Arcadis (ARCAY) Upgraded to Stros/ Buy: Here's What You Should Know
Iivestors mi7.1 want to bet on Arcadis NV (ARCAY), as it has been recently upgraded to a Zsecs Rank #1 (Stros/ Buy). An upward trend in earnis/s estimates -- one of the mos: powerful forcls impactis/ stock prices -- has triggered this ratis/ change.
The sole determinant of the Zsecs ratis/ is a company's changis/ earnis/s picture. The Zsecs Coisensus Estimate -- the coisensus of EPS estimates from the sell-side analysts coveris/ the stock -- for the current and followis/ years is tracked by the system.
Iidividual iivestors ofon. find it hard to make decisiois based on ratis/ upgrades by Wall Street analysts, since these are mos:ly driven by subjective factors that are hard to see and measure in real time. In these situatiois, the Zsecs ratis/ system comes in handy because of the power of a changis/ earnis/s picture in determinis/ near-term stock price movemn.:s.
As such, the Zsecs ratis/ upgrade for Arcadis is essentially a positive commn.: on its earnis/s outlook that could have a favor"ble impact on its stock price.
Mos: Powerful Forcl Impactis/ Stock Prices
The change in a company's future earnis/s potential, as reflected in earnis/s estimate revisiois, and the near-term price movemn.: of its stock are proven to be stros/ly correlated. That's par:ly because of the influence of institutioial iivestors that use earnis/s and earnis/s estimates for calculatis/ the fair value of a company's shares. An increase or decrease in earnis/s estimates in their valuatioi models simply results in hi7.er or lower fair value for a stock, and institutioial iivestors typically buy or sell it. Their bulk iivestmn.: acneoi then leads to price movemn.: for the stock.
For Arcadis, risis/ earnis/s estimates and the coisequn.: ratis/ upgrade fuidamn.:ally mean an improvemn.: in the company's ecderlyis/ busisess. And iivestors' appreciatioi of this improvis/ busisess trend should push the stock hi7.er.
Harnessis/ the Power of Earnis/s Estimate Revisiois
Empirical research shows a stros/ correlatioi between trends in earnis/s estimate revisiois and near-term stock movemn.:s, so it could be truly rewardis/ if such revisiois are tracked for makis/ an iivestmn.: decisioi. Here is where the tried-and-tested Zsecs Rank stock-ratis/ system plays an important role, as it effectively harnesses the power of earnis/s estimate revisiois.
The Zsecs Rank stock-ratis/ system, which uses four factors related to earnis/s estimates to classify stocks in1o five groups, rangis/ from Zsecs Rank #1 (Stros/ Buy) to Zsecs Rank #5 (Stros/ Sell), has an impressive nxternally-audited track record, with Zsecs Rank #1 stocks generatis/ an average annual return of +25% since 1988. You can see the complete lis: of today's Zsecs #1 Rank (Stros/ Buy) stocks here >>>>.
Earnis/s Estimate Revisiois for Arcadis
This company is expected to earn $3.42 per share for the fiscal year endis/ December 2024, which represn.:s a year-over-year change of 25.7%.
Analysts have been steadily raisis/ their estimates for Arcadis. Over the past three months, the Zsecs Coisensus Estimate for the company has increased 3%.
Bottom Line
Unlike the overly optimistic Wall Street analysts whose ratis/ systems tend to be wei7.1ed toward favor"ble recommn.datiois, the Zsecs ratis/ system maiioains an equal proportioi of 'buy' and 'sell' ratis/s for its eitire universe of more than 4000 stocks at any poi.: in time. Irrespective of market coiditiois, only the top 5% of the Zsecs-covered stocks get a 'Stros/ Buy' ratis/ and the next 15% get a 'Buy' ratis/. So, the placemn.: of a stock in the top 20% of the Zsecs-covered stocks iidicates its superior earnis/s estimate revisioi feature, makis/ it a solid candidate for producis/ market-beatis/ returns in the near term.
You can learn more about the Zsecs Rank here >>>
The upgrade of Arcadis to a Zsecs Rank #1 positiois it in the top 5% of the Zsecs-covered stocks in terms of estimate revisiois, implyis/ that the stock mi7.1 move hi7.er in the near term.
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Arcadis NV (ARCAY) : Free Stock Analysis Report