Mazda Motor Corporation (MZDAY), A Strong Stock Buy
Mazda Motor Corporation (MZDAY), a Zacks Rank #1 (Strong buy) makes it an attractive stock. This is essentially a reflection on an upward trend of earnings estimates, which is one of the most important factors that affect stock prices.
The company’s earnings outlook is the sole basis for the Zacks Rating. It tracks the EPS estimates for current and future years from sell-side analysts that cover the stock through a consensus estimate — the Zacks Consensus Expecte.
Individual investors will find the Zacks Rating System extremely useful because it uses a changing earnings picture to determine near-term stock price movements. It can be difficult for Wall Street analysts to give ratings upgrades that would make it easier to make informed decisions. These movements are largely driven by subjective factors, which are difficult to measure and see in real-time.
The Zacks rating upgrade of Mazda Motor Corporation reflects optimism about Mazda’s earnings outlook, which could translate into buying pressure or an increase in stock price.
The Most Influencing Force on Stock Prices
A company’s future earnings, as shown in earnings estimate revisions has been strongly correlated to the stock’s near-term price movements. This is partly due to the influence of institutional investors who use earnings and earnings estimations for calculating the fair market value of company shares. Institutional investors often buy or sell stock whose fair value is affected by changes in the earnings estimates used in their valuation models. The stock’s price movements are then caused by the large volume of shares they have sold.
Mazda Motor Corporation believes that rising earnings estimates and the subsequent rating upgrade will translate into a fundamental improvement in its underlying business. Investors’ appreciation for this positive business trend should propel the stock higher.
Unlocking the power of earnings Estimate revisions
Empirical research shows strong correlations between near-term stock movements and revisions in earnings estimates. This could make it a rewarding investment strategy. This is where the proven Zacks Rank stock rating system comes in, since it effectively harnesses earnings estimate revisions.
Zacks Rank’s stock-rating system uses four factors to determine earnings estimates to place stocks in five groups. Zacks Rank #1 stocks are considered a strong buy and have a record of exceedingly high returns. Zacks Rank #1 stocks have a +25% average annual return since 1988. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here >>>>.
Mazda Motor Corporation Earnings Estimate Reveals
This company is forecast to earn $0.94 per Share for the fiscal year ending March 2023. This is 23.7% more than the reported figure in the previous year.
Analysts have been increasing their estimates for Mazda Motor Corporation. The Zacks Consensus estimate for Mazda Motor Corporation has increased 64% in the last three months.
Bottom Line
The Zacks rating system, unlike Wall Street’s optimistic analysts who tend to weight their recommendations toward positives, maintains an equal number of ‘buy’ or’sell’ ratings across its entire universe of over 4000 stocks at all times. No matter what market conditions may be, the Zacks rating system only gives the highest 5% of Zacks-covered stocks a Strong Buy rating. The next 15% receive a Buy’ rating. A stock’s placement in the top 20 percent of Zacks-covered shares indicates that it has a superior earnings estimate revision capability, which makes it a solid candidate to produce market-beating returns in near term.
You can learn more about the Zacks Rank here >>>
Mazda Motor Corporation’s Zacks Rank #1 upgrade places it in the top 5% Zacks covered stocks according to estimate revisions. This suggests that the stock could move higher in coming months.
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Mazda Motor Corporation (MZDAY) : Free Stock Analysis Report