Why Full Truck Alliance Co. Ltd. Sponsored ADR (YMM) Might be Well Poised for a Surge
Full Truck Alliance Co. Ltd. Sponsored ADR (YMM) could be a solid addition to your portfolio given a notable revision in the company's earnings estimates. While the stock has been gaining lately, the trend might continue since its earnings outlook is still improving.
The rising trend in estimate revisions, which is a result of growing analyst optimism on the earnings prospects of this company, should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. This insight is at the core of our stock rating tool -- the Zacks Rank.
The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Strong Buy) to a Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record of outperformance, with Zacks #1 Ranked stocks generating an average annual return of +25% since 2008.
Consensus earnings estimates for the next quarter and full year have moved considerably higher for Full Truck Alliance Co. Ltd. Sponsored ADR, as there has been strong agreement among the covering analysts in raising estimates.
Current-Quarter Estimate Revisions
For the current quarter, the company is expected to earn $0.09 per share, which is a change of +50% from the year-ago reported number.
Over the last 30 days, one estimate has moved higher for Full Truck Alliance Co. Ltd. Sponsored ADR compared to no negative revisions. As a result, the Zacks Consensus Estimate has increased 28.57%.
Current-Year Estimate Revisions
The company is expected to earn $0.36 per share for the full year, which represents a change of +89.47% from the prior-year number.
There has been an encouraging trend in estimate revisions for the current year as well. Over the past month, one estimate has moved up for Full Truck Alliance Co. Ltd. Sponsored ADR versus no negative revisions. This has pushed the consensus estimate 16.13% higher.
Favorable Zacks Rank
Thanks to promising estimate revisions, Full Truck Alliance Co. Ltd. Sponsored ADR currently carries a Zacks Rank #2 (Buy). The Zacks Rank is a tried-and-tested rating tool that helps investors effectively harness the power of earnings estimate revisions and make the right investment decision. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Our research shows that stocks with Zacks Rank #1 (Strong Buy) and 2 (Buy) significantly outperform the S&P 500.
Bottom Line
Full Truck Alliance Co. Ltd. Sponsored ADR shares have added 11.6% over the past four weeks, suggesting that investors are betting on its impressive estimate revisions. So, you may consider adding it to your portfolio right away to benefit from its earnings growth prospects.
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Full Truck Alliance Co. Ltd. Sponsored ADR (YMM) : Free Stock Analysis Report
