What Makes XOMA Royalty (XOMA) a New Buy Stock

Core Viewpoint - XOMA Royalty (XOMA) has received an upgrade to a Zacks Rank 2 (Buy) due to an upward trend in earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system emphasizes the importance of changing earnings estimates, which are closely correlated with near-term stock price movements [4][6]. - Rising earnings estimates for XOMA Royalty indicate an improvement in the company's underlying business, suggesting that investors may respond positively by driving the stock price higher [5][10]. Recent Earnings Estimate Revisions - For the fiscal year ending December 2024, XOMA Royalty is expected to earn -$0.12 per share, reflecting a year-over-year change of 95.5% [8]. - Over the past three months, the Zacks Consensus Estimate for XOMA Royalty has increased by 19.2%, indicating a positive trend in earnings expectations [8]. Zacks Rank System Overview - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 (Strong Buy) stocks historically generating an average annual return of +25% since 1988 [7]. - Only the top 20% of Zacks-covered stocks receive a 'Strong Buy' or 'Buy' rating, highlighting their superior earnings estimate revision features [9][10].