Hess (HES) Upgraded to Strong Buy: Here's Why

Core Viewpoint - The recent upgrade of Hess to a Zacks Rank 1 indicates a positive earnings outlook, which is likely to influence its stock price favorably [2][10]. Earnings Estimate Revisions - The Zacks Consensus Estimate for Hess has increased by 38.4% over the past three months, reflecting a significant upward trend in earnings estimates [12]. - For the fiscal year ending December 2024, Hess is expected to earn $9.99 per share, representing a 97.8% increase from the previous year's reported earnings [14]. Zacks Rating System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with only the top 5% receiving a 'Strong Buy' rating, indicating superior earnings estimate revisions [11][15]. - Stocks rated Zacks Rank 1 have historically generated an average annual return of +25% since 1988, showcasing the effectiveness of the rating system [11]. Institutional Investor Influence - Changes in earnings estimates are strongly correlated with near-term stock price movements, as institutional investors adjust their valuations based on these estimates [3][8].