What Investors Need to Know: Why Oddity Tech Gets a Strong Buy Upgrade

Oddity Tech (ODD), an online retailer specializing in cosmetics and beauty products, just received a significant boost in investor confidence. The stock has been upgraded to a Zacks Rank #1 rating, placing it firmly in the “Strong Buy” category. But what does this upgrade really mean for your portfolio?

The answer lies in one powerful factor: changing earnings expectations. When analysts revise their profit forecasts upward, it signals that a company’s business fundamentals are strengthening. For Oddity Tech, this is exactly what’s happening.

The Science Behind Earnings-Driven Stock Movements

The link between earnings estimate revisions and stock price performance is well-documented and compelling. Institutional investors—the big money players managing billions in assets—rely heavily on earnings forecasts when calculating what a stock should actually be worth. When those forecasts improve, their valuation models recalculate instantly. The result? They buy more shares, driving prices higher.

This isn’t speculation or subjective opinion. It’s quantifiable, measurable, and historically proven. Unlike traditional Wall Street analyst ratings, which often lean too optimistic, the Zacks ranking system maintains a disciplined approach. Only the top 5% of stocks it covers receive the #1 Strong Buy rating at any given time. This exclusivity matters.

Oddity Tech’s Recent Momentum

Over the past three months, analysts have become increasingly bullish on Oddity Tech. The consensus earnings estimate has climbed 4.6%, a meaningful revision that triggered the rating upgrade.

The company is projected to generate $2.13 in earnings per share for fiscal year 2025 (ending December), representing flat year-over-year growth on the surface. But don’t let that number fool you—the direction of estimate revisions is far more important than the absolute level. Rising expectations mean the market is seeing improvement where it wasn’t visible before.

Why This Matters for Stock Performance

The Zacks system has tracked this pattern for decades with remarkable results. Stocks receiving a #1 Strong Buy rating have averaged annual returns of 25% since 1988. That’s the power of being positioned ahead of positive earnings revisions.

When a company like Oddity Tech makes it into the top tier of Zacks-covered stocks based on estimate revision strength, it suggests the stock has room to move higher in the near term. Investors who understand this dynamic often position themselves before the broader market catches on.

The Bottom Line

The upgrade of Oddity Tech to Strong Buy status reflects something concrete: improving earnings visibility. Analysts are increasingly confident in the company’s profit trajectory. Whether you’re a long-term value investor or focused on near-term momentum, understanding the oddity meaning behind rating upgrades—that they’re grounded in hard data about future profitability—gives you an edge in decision-making.