Core Viewpoint - Addex Therapeutics Ltd. 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 Outlook - The Zacks Consensus Estimate for Addex Therapeutics for the fiscal year ending December 2024 is projected at $0.49 per share, reflecting a 102.6% increase from the previous year [5]. - Over the past three months, the consensus estimate has risen by 104.2%, indicating a strong upward trend in earnings expectations [5]. Impact of Earnings Estimates - Changes in earnings estimates are strongly correlated with near-term stock price movements, primarily due to institutional investors adjusting their valuations based on these estimates [3]. - An increase in earnings estimates typically leads to higher fair value assessments by institutional investors, resulting in buying or selling activity that influences stock prices [3]. Zacks Rating System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 (Strong Buy) to Zacks Rank 5 (Strong Sell), and has shown a strong track record of performance [4]. - Stocks rated Zacks Rank 1 have generated an average annual return of +25% since 1988, highlighting the effectiveness of the system in identifying potential investment opportunities [4]. Positioning of Addex Therapeutics - The upgrade to Zacks Rank 2 places Addex Therapeutics in the top 20% of Zacks-covered stocks, suggesting a favorable position for potential market-beating returns in the near term [7].
What Makes Addex Therapeutics (ADXN) a New Buy Stock