BioMarin (BMRN) Upgraded to Buy: Here's Why

Core Viewpoint - BioMarin Pharmaceutical (BMRN) has received a Zacks Rank 2 (Buy) upgrade, indicating a positive trend in earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system is based on changes in earnings estimates, which are closely correlated with near-term stock price movements [2][4]. - Institutional investors utilize earnings estimates to determine the fair value of stocks, leading to buying or selling actions that affect stock prices [4]. Business Improvement Indicators - The upgrade in BioMarin's rating reflects an improvement in the company's underlying business, which is expected to drive stock appreciation [5]. - BioMarin is projected to earn $3.27 per share for the fiscal year ending December 2024, representing a year-over-year increase of 57.2% [8]. Earnings Estimate Revisions - Over the past three months, the Zacks Consensus Estimate for BioMarin has increased by 23.6%, indicating a positive trend in earnings estimates [8]. - The Zacks Rank system classifies stocks based on earnings estimate revisions, with only the top 20% of stocks receiving a 'Strong Buy' or 'Buy' rating, suggesting potential for market-beating returns [9][10].