Schneider Electric (SBGSY) Upgraded to Buy: What Does It Mean for the Stock?
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Schneider Electric SE (SBGSY) could be a solid addition to your portfolio given its recent upgrade to a Zacks Rank #2 (Buy). This upgrade primarily reflects an upward trend in earnings estimates, which is one of the most powerful forces impacting stock prices.The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the system.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 Schneider Electric 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, has proven to be strongly correlated with the near-term price movement of its stock. 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. 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 Schneider Electric, 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 RevisionsAs empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, tracking such revisions for making an investment decision could be truly rewarding. 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 Schneider ElectricFor the fiscal year ending December 2024, this company is expected to earn $1.81 per share, which is a change of 15.3% from the year-ago reported number.Analysts have been steadily raising their estimates for Schneider Electric. Over the past three months, the Zacks Consensus Estimate for the company has increased 3.2%.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 Schneider Electric to a Zacks Rank #2 positions it in the top 20% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher in the near term.Research Chief Names "Single Best Pick to Double"From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant 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 Schneider Electric SE (SBGSY): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks
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Quelle: Zacks
Nachrichten zu Schneider Electric S.A.
Analysen zu Schneider Electric S.A.
Datum | Rating | Analyst | |
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11.10.2024 | Schneider Electric Overweight | JP Morgan Chase & Co. | |
09.10.2024 | Schneider Electric Overweight | JP Morgan Chase & Co. | |
04.10.2024 | Schneider Electric Overweight | JP Morgan Chase & Co. | |
03.10.2024 | Schneider Electric Overweight | JP Morgan Chase & Co. | |
30.09.2024 | Schneider Electric Hold | Deutsche Bank AG |
Datum | Rating | Analyst | |
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11.10.2024 | Schneider Electric Overweight | JP Morgan Chase & Co. | |
09.10.2024 | Schneider Electric Overweight | JP Morgan Chase & Co. | |
04.10.2024 | Schneider Electric Overweight | JP Morgan Chase & Co. | |
03.10.2024 | Schneider Electric Overweight | JP Morgan Chase & Co. | |
27.09.2024 | Schneider Electric Buy | UBS AG |
Datum | Rating | Analyst | |
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30.09.2024 | Schneider Electric Hold | Deutsche Bank AG | |
03.09.2024 | Schneider Electric Hold | Deutsche Bank AG | |
01.08.2024 | Schneider Electric Hold | Deutsche Bank AG | |
01.07.2024 | Schneider Electric Hold | Deutsche Bank AG | |
21.06.2024 | Schneider Electric Hold | Deutsche Bank AG |
Datum | Rating | Analyst | |
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18.09.2024 | Schneider Electric Underperform | RBC Capital Markets | |
06.09.2024 | Schneider Electric Underperform | RBC Capital Markets | |
03.09.2024 | Schneider Electric Underperform | RBC Capital Markets | |
26.08.2024 | Schneider Electric Sell | Goldman Sachs Group Inc. | |
31.07.2024 | Schneider Electric Underperform | RBC Capital Markets |
Um die Übersicht zu verbessern, haben Sie die Möglichkeit, die Analysen für Schneider Electric S.A. nach folgenden Kriterien zu filtern.
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