A Strong Investment Choice with Upward Earnings Potential
Cricut, Inc. (CRCT) presents a compelling investment opportunity due to its significantly improving earnings outlook. Despite recent strong performance, analysts continue to raise their earnings estimates for the company, suggesting further potential for growth.
This upward trend in estimates reflects growing optimism among analysts regarding Cricut's earnings prospects. This optimism is likely to translate into higher stock prices, as research indicates a strong correlation between positive revisions and near-term stock price movements. This principle forms the basis of the Zacks Rank, a five-grade system ranging from Strong Buy (Rank #1) to Strong Sell (Rank #5). The Zacks Rank boasts an impressive track record, with Zacks #1 Ranked stocks generating an average annual return of +25% since 2008.
In the case of Cricut, analysts have consistently revised their earnings estimates upwards, leading to significantly higher consensus estimates for both the current quarter and full year. The current quarter's earnings estimate of $0.07 per share represents a 16.67% increase from the previous estimate and a -12.5% change from the year-ago figure. Similarly, the full-year earnings estimate of $0.29 per share reflects a 20.83% increase from the year-ago number.
This positive trend in estimate revisions has earned Cricut a Zacks Rank #2 (Buy). The Zacks Rank leverages the power of earnings estimate revisions to guide investors towards profitable investment decisions. Research demonstrates that stocks with Zacks Rank #1 (Strong Buy) and 2 (Buy) consistently outperform the S&P 500.
Cricut's strong earnings growth potential has attracted investor interest, leading to a 10% gain in its stock price over the past four weeks. Considering the company's promising outlook, adding Cricut to your portfolio could be a wise investment decision.