Surging Earnings Estimates Signal Upside for Maplebear Stock

Maplebear CART 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.

Analysts' growing optimism on the earnings prospects of this operator of the Instacart online grocery is driving estimates higher, which 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. Our stock rating tool -- the Zacks Rank -- has this insight at its core.

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.

For Maplebear, strong agreement among the covering analysts in revising earnings estimates upward has resulted in meaningful improvement in consensus estimates for the next quarter and full year.

Current-Quarter Estimate Revisions

The earnings estimate of $0.20 per share for the current quarter represents a change of +100.96% from the number reported a year ago.

Over the last 30 days, the Zacks Consensus Estimate for Maplebear has increased 20.22% because four estimates have moved higher while one has gone lower.

Current-Year Estimate Revisions

For the full year, the company is expected to earn $1.14 per share, representing a year-over-year change of +109.17%.

In terms of estimate revisions, the trend for the current year also appears quite encouraging for Maplebear. Over the past month, six estimates have moved higher compared to no negative revisions, helping the consensus estimate increase 12.19%.

Favorable Zacks Rank

Thanks to promising estimate revisions, Maplebear currently carries a Zacks Rank #1 (Strong 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.

Our research shows that stocks with Zacks Rank #1 (Strong Buy) and 2 (Buy) significantly outperform the S&P 500.

Bottom Line

Maplebear shares have added 5.2% 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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