ABB (ABBNY) could be a solid addition to your portfolio given its recent upgrade to Zacks Rank #1 (Strong Buy). This upgrade primarily reflects the upward trend in earnings estimates, which is one of the most powerful forces affecting stock prices.

The Zacks Rank is based solely on the company’s changing earnings picture. It tracks earnings per share estimates for the current and future years from analysts covering the stock through a consensus estimate, the Zacks Consensus Estimate.

Because the changing earnings picture is a powerful factor influencing stock price movements in the near future, the Zacks rating system is very useful for individual investors. It can be difficult for them to make decisions based on ratings upgrades by Wall Street analysts because they are largely determined by subjective factors that are difficult to see and measure in real time.

Thus, a Zacks rating upgrade for ABB is essentially a positive commentary on its earnings outlook, which could have a favorable impact on the stock price.