Virgin Galactic (SPCE) Upgraded to Buy: What Does It Mean for the Stock?

Core Viewpoint - Virgin Galactic (SPCE) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook driven by rising earnings estimates, which significantly influence stock prices [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system emphasizes the correlation between changes in earnings estimates and stock price movements, particularly influenced by institutional investors who adjust their valuations based on these estimates [4][6]. - For Virgin Galactic, the increase in earnings estimates suggests an improvement in the company's underlying business, likely leading to higher stock prices as investor sentiment shifts positively [5][8]. Zacks Rating System - The Zacks Rank system categorizes stocks into five groups based on earnings estimates, with a strong historical performance, particularly for Zacks Rank 1 stocks, which have averaged a +25% annual return since 1988 [7][9]. - Virgin Galactic's upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, indicating a strong potential for market-beating returns in the near term [10]. Earnings Estimate Revisions - For the fiscal year ending December 2025, Virgin Galactic is projected to earn -$8.72 per share, reflecting a 37.2% change from the previous year, with a 12.9% increase in the Zacks Consensus Estimate over the past three months [8].