Ryanair (RYAAY) Upgraded to Strong Buy: Here's What You Should Know

19.04.24 18:00 Uhr

Investors might want to bet on Ryanair (RYAAY), as it has been recently upgraded to a Zacks Rank #1 (Strong Buy). This rating change essentially reflects an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.A company's changing earnings picture is at the core of the Zacks rating. The system tracks the Zacks Consensus Estimate -- the consensus measure of EPS estimates from the sell-side analysts covering the stock -- for the current and following years.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. 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.As such, the Zacks rating upgrade for Ryanair is essentially a positive comment on its earnings outlook that could have a favorable impact on its stock price.Most Powerful Force Impacting Stock PricesThe change in a company's future earnings potential, as reflected in earnings estimate revisions, and the near-term price movement of its stock are proven to be strongly correlated. That's partly because of the influence of institutional investors that use earnings and earnings estimates for calculating the fair value of a company's shares. 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. Their transaction of large amounts of shares then leads to price movement for the stock.For Ryanair, rising earnings estimates and the consequent rating upgrade fundamentally mean an improvement in the company's underlying business. And investors' appreciation of this improving business trend should push the stock higher.Harnessing the Power of Earnings Estimate RevisionsEmpirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, so it could be truly rewarding if such revisions are tracked for making an investment decision. Here is where the tried-and-tested Zacks Rank stock-rating system plays an important role, as it effectively harnesses the power of earnings estimate revisions.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. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here >>>>.Earnings Estimate Revisions for RyanairFor the fiscal year ending March 2024, this airline is expected to earn $9.21 per share, which is a change of 26.3% from the year-ago reported number.Analysts have been steadily raising their estimates for Ryanair. Over the past three months, the Zacks Consensus Estimate for the company has increased 3.6%.Bottom LineUnlike 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. 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. 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.You can learn more about the Zacks Rank here >>>The upgrade of Ryanair to a Zacks Rank #1 positions it in the top 5% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher in the near term.Top 5 Dividend Stocks for Your RetirementZacks targets 5 well-established companies with solid fundamentals and a history of raising dividends. More importantly, they have the resources and will to likely pay them in the future.Click now for a Special Report packed with unconventional wisdom and insights you simply won’t get from your neighborhood financial planner.See our Top 5 now – the report is FREE >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Ryanair Holdings PLC (RYAAY): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks

Quelle: Zacks

Nachrichten zu Ryanair Holdings plc (Spons. ADRS)

Analysen zu Ryanair Holdings plc (Spons. ADRS)

DatumRatingAnalyst
27.05.2015Ryanair In-lineImperial Capital
19.12.2014Ryanair OutperformImperial Capital
16.07.2012Ryanair neutralHSBC
12.06.2008Ryanair kaufen (Update)Nasd@q Inside
12.06.2008Ryanair kaufen Korrekturaktiencheck.de
DatumRatingAnalyst
19.12.2014Ryanair OutperformImperial Capital
12.06.2008Ryanair kaufen (Update)Nasd@q Inside
12.06.2008Ryanair kaufen Korrekturaktiencheck.de
03.01.2007Update Ryanair Holdings plc (Spons. ADRS): OverweiPrudential Securities
09.02.2006Update Ryanair Holdings plc (Spons. ADRS): BuySmith Barney Citigroup
DatumRatingAnalyst
27.05.2015Ryanair In-lineImperial Capital
16.07.2012Ryanair neutralHSBC
DatumRatingAnalyst

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