A company's changing earnings picture is at the core of the Zacks rating. The system tracks the Zacks Consensus Estimate -- the consensus measure of EPS estimates from the sell-side analysts covering the stock -- for the current and following years.
Since a changing earnings picture is a powerful factor influencing near-term stock price movements, the Zacks rating system is very useful for individual investors. They may find it difficult to make decisions based on rating upgrades by Wall Street analysts, as these are mostly driven by subjective factors that are hard to see and measure in real time.
Therefore, the Zacks rating upgrade for Lilium N.V. basically reflects positivity about its earnings outlook that could translate into buying pressure and an increase in its stock price.
Most Powerful Force Impacting Stock Prices
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. The influence of institutional investors has a partial contribution to this relationship, as these big professionals use earnings and earnings estimates to calculate the fair value of a company's shares. 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. Their transaction of large amounts of shares then leads to price movement for the stock.
Fundamentally speaking, rising earnings estimates and the consequent rating upgrade for Lilium N.V. imply an improvement in the company's underlying business. Investors should show their appreciation for this improving business trend by pushing the stock higher.
Harnessing the Power of Earnings Estimate Revisions
As empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, tracking such revisions for making an investment decision could be truly rewarding. 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.
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. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here >>>>.
Earnings Estimate Revisions for Lilium N.V.
For the fiscal year ending December 2023, this company is expected to earn -$0.59 per share, which is a change of 29.8% from the year-ago reported number.
Analysts have been steadily raising their estimates for Lilium N.V. Over the past three months, the Zacks Consensus Estimate for the company has increased 7.5%.
Bottom Line
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. Irrespective of market conditions, only the top 5% of the Zacks-covered stocks get a 'Strong Buy' rating and the next 15% get a 'Buy' rating. So, the placement of a stock in the top 20% of the Zacks-covered stocks indicates its superior earnings estimate revision feature, making it a solid candidate for producing market-beating returns in the near term.
You can learn more about the Zacks Rank here >>>
The upgrade of Lilium N.V. to a Zacks Rank #2 positions it in the top 20% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher in the near term.
Recent LILM News
- Lilium Announces Firm Order of 20 Lilium Jets from U.S. Operator UrbanLink • GlobeNewswire Inc. • 05/06/2024 10:30:00 AM
- Full-scale Lilium Jet model to be unveiled for the first time at EBACE2024 • GlobeNewswire Inc. • 04/30/2024 11:30:00 AM
- Lilium Starts Production of High-Performance Battery Packs for the Lilium Jet • GlobeNewswire Inc. • 04/16/2024 11:30:00 AM
- Lilium Begins Integration of Garmin Standby Flight Instruments for the Lilium Jet • GlobeNewswire Inc. • 04/02/2024 11:30:00 AM
- Lilium Names Johan Malmqvist as Chief Financial Officer • GlobeNewswire Inc. • 03/25/2024 12:30:00 PM
- Lilium and Atlantic Aviation Unite to Electrify Regional Air Mobility Across the U.S. • GlobeNewswire Inc. • 03/13/2024 12:30:00 PM
- Lilium Supports NYC EDC’s Decision to Seek Agnostic Operator for Downtown Manhattan Heliport & AAM’s Inclusion; Heliport will Serve as Key Site in Northeast Corridor Regional Network for Lilium Jet • GlobeNewswire Inc. • 03/07/2024 12:30:00 PM
- Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16] • Edgar (US Regulatory) • 02/27/2024 12:29:51 PM
- Lilium releases Full Year and Fourth Quarter 2023 Shareholder Letter • GlobeNewswire Inc. • 02/27/2024 11:30:00 AM
- Lilium Gears Up for Production of the Lilium Jet’s Revolutionary Electric Propulsion Units • GlobeNewswire Inc. • 02/26/2024 12:30:00 PM
- Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16] • Edgar (US Regulatory) • 02/21/2024 11:30:14 AM
- Lilium partners with Star Charge to develop best-in-class charging system for eVTOL operations • GlobeNewswire Inc. • 02/20/2024 09:30:00 PM
- Lilium partners with PhilJets to bring eVTOLs to Asia, starting with the Philippines • GlobeNewswire Inc. • 02/19/2024 11:01:00 PM
- Lilium Announces FY and Q4 2023 Shareholder Letter and Webcast on February 27, 2024 • GlobeNewswire Inc. • 02/14/2024 01:00:00 PM
- Lilium Designates Future Orlando Vertiport as Key Network Hub, Supports its Designation as Advanced Mobility Site • GlobeNewswire Inc. • 02/08/2024 12:30:00 PM
- Lilium and AJW Group Form Strategic Collaboration on Material Management as part of Lilium’s Aftermarket Services • GlobeNewswire Inc. • 01/29/2024 12:30:00 PM
- Form SC 13D/A - General statement of acquisition of beneficial ownership: [Amend] • Edgar (US Regulatory) • 01/19/2024 10:00:44 PM
- Global airport operator Fraport and Lilium to collaborate on development of commercial eVTOL network • GlobeNewswire Inc. • 01/10/2024 12:30:00 PM
- Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16] • Edgar (US Regulatory) • 01/05/2024 10:00:17 PM
- Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16] • Edgar (US Regulatory) • 12/12/2023 10:00:16 PM
- Form EFFECT - Notice of Effectiveness • Edgar (US Regulatory) • 12/12/2023 05:15:17 AM
- Form 424B3 - Prospectus [Rule 424(b)(3)] • Edgar (US Regulatory) • 12/11/2023 09:41:43 PM
- Lufthansa Group and Lilium sign Memorandum of Understanding for strategic partnership • GlobeNewswire Inc. • 12/07/2023 12:30:00 PM
- Lilium Starts Production of the Lilium Jet in Watershed Moment for Sustainable Aviation • GlobeNewswire Inc. • 12/06/2023 01:36:20 PM
Avant Technologies Equipping AI-Managed Data Center with High Performance Computing Systems • AVAI • May 10, 2024 8:00 AM
VAYK Discloses Strategic Conversation on Potential Acquisition of $4 Million Home Service Business • VAYK • May 9, 2024 9:00 AM
Bantec's Howco Awarded $4.19 Million Dollar U.S. Department of Defense Contract • BANT • May 8, 2024 10:00 AM
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Kona Gold Beverages, Inc. Achieves April Revenues Exceeding $586,000 • KGKG • May 8, 2024 8:30 AM
Epazz plans to spin off Galaxy Batteries Inc. • EPAZ • May 8, 2024 7:05 AM