Abn Amro BK N V - Unsponsored ADR (AAVMY Quick QuoteAAVMY - Free Report) appears an attractive pick given a noticeable improvement in the company's earnings outlook. The stock has been a strong performer lately, and the momentum might continue with analysts still raising their earnings estimates for the company.

The rising trend in estimate revisions, which is a result of growing analyst optimism on the earnings prospects of this company, 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. This insight is at the core of our stock rating tool -- the Zacks Rank.

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.

Consensus earnings estimates for the next quarter and full year have moved considerably higher for Abn Amro BK N V - Unsponsored ADR, as there has been strong agreement among the covering analysts in raising estimates.

The chart below shows the evolution of forward 12-month Zacks Consensus EPS estimate:

12 Month EPS

Current-Quarter Estimate Revisions

For the current quarter, the company is expected to earn $1.05 per share, which is a change of +34.6% from the year-ago reported number.

Over the last 30 days, the Zacks Consensus Estimate for Abn Amro BK N V - Unsponsored ADR has increased 15.39% because one estimate has moved higher compared to no negative revisions.

Current-Year Estimate Revisions

For the full year, the company is expected to earn $3.77 per share, representing a year-over-year change of +36.1%.

In terms of estimate revisions, the trend for the current year also appears quite encouraging for Abn Amro BK N V - Unsponsored ADR. Over the past month, one estimate has moved higher compared to no negative revisions, helping the consensus estimate increase 10.23%.

Favorable Zacks Rank

Thanks to promising estimate revisions, Abn Amro BK N V - Unsponsored ADR currently carries a Zacks Rank #2 (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.

You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

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

Bottom Line

Investors have been betting on Abn Amro BK N V - Unsponsored ADR because of its solid estimate revisions, as evident from the stock's 9% gain over the past four weeks. As its earnings growth prospects might push the stock higher, you may consider adding it to your portfolio right away.