On the results page, you will find valuable numbers that reveal where the stock stands in the eyes of the investment community, and perhaps forecast stock price movement. This chart is updated daily, so check in frequently to find out current sentiment on your stock. A large swing in the ratings could mean this is the time to buy or sell your holding. Earnings estimates are a measurement of a company's health and prosperity predicted down to the penny. Zacks Investment Research collects analysts' summaries from 240 brokerage houses and 3,000-plus analysts and creates a consensus estimate of all the analysts who follow a particular stock.
Positive trends point to a company experiencing healthy growth.
Earnings estimates are a valuable indicator because changes in estimates often predict the rise or fall of a stock price. Typically, when analysts increase their estimates, investors' expectation of the stock's income increases, thus the value of the company and stock price rises. In addition, when a company reports earnings that vary from the consensus estimate, the stock typically reacts positively or negatively. While average investors usually miss out on capitalizing on earnings surprises, the results do affect analysts' ratings in future quarters. You can also do more digging on a company by selecting the links to its income statement and balance sheet.