Arcosa (ACA) Upgraded to Strong Buy: Here's What You Should Know

Core Viewpoint - Arcosa (ACA) has been upgraded to a Zacks Rank 1 (Strong Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][2]. Earnings Outlook - The Zacks rating upgrade reflects optimism about Arcosa's earnings potential, which could lead to increased buying pressure and a rise in stock price [2]. - Arcosa is expected to earn $3.58 per share for the fiscal year ending December 2024, representing a year-over-year increase of 10.8% [5]. Earnings Estimate Revisions - Over the past three months, the Zacks Consensus Estimate for Arcosa has increased by 6.1%, indicating a positive trend in earnings estimates [5]. - The change in earnings estimates is strongly correlated with near-term stock price movements, particularly influenced by institutional investors [3][4]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [4]. - Arcosa's upgrade to Zacks Rank 1 places it in the top 5% of Zacks-covered stocks, suggesting a strong potential for price appreciation in the near term [7].