AbCellera Biologics (ABCL) Upgraded to Buy: Here's What You Should Know

Core Viewpoint - AbCellera Biologics Inc. (ABCL) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][2]. Earnings Estimates and Stock Movement - The Zacks rating system is based on changes in earnings estimates, which are closely correlated with near-term stock price movements [3]. - Institutional investors utilize earnings estimates to determine the fair value of a company's shares, leading to buying or selling actions that affect stock prices [3]. Earnings Estimate Revisions - For the fiscal year ending December 2024, AbCellera Biologics is expected to earn -$0.60 per share, reflecting a -17.7% change from the previous year [5]. - Over the past three months, the Zacks Consensus Estimate for AbCellera has increased by 7.4%, indicating a positive trend in earnings estimates [5]. Zacks Rating System - The Zacks Rank stock-rating system categorizes stocks into five groups based on earnings estimates, with a strong historical performance, particularly for Zacks Rank 1 stocks, which have generated an average annual return of +25% since 1988 [4]. - The upgrade to Zacks Rank 2 places AbCellera in the top 20% of Zacks-covered stocks, suggesting potential for higher stock movement in the near term [7].