Unlike 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.
Over the past three months, the Zacks Consensus Estimate for the company has increased 51.3%. This company is expected to earn -$0.19 per share for the fiscal year ending September 2021, which represents a year-over-year change of 63.5%.Īnalysts have been steadily raising their estimates for CleanSpark. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here >.Įarnings Estimate Revisions for CleanSpark 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. 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. Harnessing the Power of Earnings Estimate RevisionsĮmpirical 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. Investors should show their appreciation for this improving business trend by pushing the stock higher.
Cleanspark buy or sell upgrade#
Their bulk investment action then leads to price movement for the stock.įundamentally speaking, rising earnings estimates and the consequent rating upgrade for CleanSpark imply an improvement in the company's underlying business. 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. 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. The 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. Most Powerful Force Impacting Stock Prices These are mostly driven by subjective factors that are hard to see and measure in real time.Īs such, the Zacks rating upgrade for CleanSpark is essentially a positive comment on its earnings outlook that could have a favorable impact on its stock price. The power of a changing earnings picture in determining near-term stock price movements makes the Zacks rating system highly useful for individual investors, since it can be difficult to make decisions based on rating upgrades by Wall Street analysts. For more information, you can click through to our platform to learn more about this and the 1 other concern we've identified. The covering analyst is clearly in love with CleanSpark at the moment, but before diving in - you should be aware that we've identified some warning flags with the business, such as a short cash runway. With a serious upgrade to expectations and a rising price target, it might be time to take another look at CleanSpark. They also upgraded their revenue estimates for this year, and sales are expected to grow faster than the wider market. The most important thing to take away from this upgrade is that there is now an expectation for CleanSpark to become profitable this year, compared to previous expectations of a loss. Factoring in the forecast acceleration in revenue, it's pretty clear that CleanSpark is expected to grow much faster than its industry. Compare this with other companies in the same industry, which are forecast to grow their revenue 14% next year. The analyst is definitely expecting CleanSpark's growth to accelerate, with the forecast 3x growth ranking favourably alongside historical growth of 96% per annum over the past three years. It will come as no surprise to learn that the analyst has increased their price target for CleanSpark 108% to US$50.00 on the back of these upgrades.Īnother way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. NasdaqCM:CLSK Earnings and Revenue Growth February 18th 2021
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