Ambev Upgraded to Buy on Improved Earnings Outlook

Ambev (ABEV) has been upgraded to a Zacks Rank #2 (Buy) due to an upward trend in earnings estimates, which is a powerful force impacting stock prices. The Zacks rating system tracks the Zacks Consensus Estimate for the current and following years, and a change in a company's future earnings potential is strongly correlated with near-term price movements. Institutional investors use earnings and earnings estimates to calculate a stock's fair value, leading to price movement. Rising earnings estimates and the consequent rating upgrade for Ambev imply an improvement in the company's underlying business, making it a potential investment opportunity.