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What Makes Bilibili (BILI) a New Buy Stock
BILIBILIBILI(BILI) ZACKS·2025-05-22 17:01

Core Viewpoint - Bilibili (BILI) has received a Zacks Rank 2 (Buy) upgrade due to an upward trend in earnings estimates, indicating a positive outlook for the company's stock price [1][3]. Earnings Estimates and Stock Price Correlation - The Zacks rating system emphasizes the importance of changing earnings estimates in influencing stock prices, with empirical research showing a strong correlation between earnings estimate revisions and near-term stock movements [4][6]. - Institutional investors play a significant role in this relationship, as they adjust their valuations based on earnings estimates, leading to stock price movements through large transactions [4]. Recent Performance and Projections - For the fiscal year ending December 2025, Bilibili is projected to earn $0.57 per share, reflecting a substantial increase of 5800% compared to the previous year's reported figure [8]. - Over the past three months, the Zacks Consensus Estimate for Bilibili has risen by 37.5%, indicating a positive trend in earnings expectations [8]. Zacks Rank System - The Zacks Rank system categorizes stocks based on earnings estimate revisions, with only the top 20% of stocks receiving a 'Strong Buy' or 'Buy' rating, suggesting superior potential for market-beating returns [9][10]. - Bilibili's upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, indicating strong earnings estimate revisions and potential for stock price appreciation in the near term [10].