![]() You can learn more about the Zacks Rank here > So, the placement of a stock in the top 20% of the Zacks-covered stocks indicates its superior earnings estimate revision feature, making it a solid candidate for producing market-beating returns in the near term. Irrespective of market conditions, only the top 5% of the Zacks-covered stocks get a 'Strong Buy' rating and the next 15% get a 'Buy' rating. Unlike the overly optimistic Wall Street analysts whose rating systems tend to be weighted toward favorable recommendations, the Zacks rating system maintains an equal proportion of 'buy' and 'sell' ratings for its entire universe of more than 4000 stocks at any point in time. Over the past three months, the Zacks Consensus Estimate for the company has increased 3.3%. This cancer drug developer is expected to earn -$8.42 per share for the fiscal year ending December 2020, which represents a year-over-year change of -15.8%.Īnalysts have been steadily raising their estimates for Blueprint Medicines. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here >.Įarnings Estimate Revisions for Blueprint Medicines The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. ![]() And investors' appreciation of this improving business trend should push the stock higher. ![]() Their bulk investment action then leads to price movement for the stock.įor Blueprint Medicines, rising earnings estimates and the consequent rating upgrade fundamentally mean an improvement in the company's underlying business. ![]() An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it. The influence of institutional investors has a partial contribution to this relationship, as these big professionals use earnings and earnings estimates to calculate the fair value of a company's shares. The change in a company's future earnings potential, as reflected in earnings estimate revisions, has proven to be strongly correlated with the near-term price movement of its stock. Most Powerful Force Impacting Stock Prices Therefore, the Zacks rating upgrade for Blueprint Medicines basically reflects positivity about its earnings outlook that could translate into buying pressure and an increase in its stock price. ![]() They may find it difficult to make decisions based on rating upgrades by Wall Street analysts, as these are mostly driven by subjective factors that are hard to see and measure in real time. Since a changing earnings picture is a powerful factor influencing near-term stock price movements, the Zacks rating system is very useful for individual investors. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure - the Zacks Consensus Estimate. The Zacks rating relies solely on a company's changing earnings picture. An upward trend in earnings estimates - one of the most powerful forces impacting stock prices - has triggered this rating change. Blueprint Medicines (BPMC) appears an attractive pick, as it has been recently upgraded to a Zacks Rank #2 (Buy). ![]()
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