Westport (WPRT) Upgraded to Buy: Here's Why

Core Viewpoint - Westport Innovations (WPRT) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook based on rising earnings estimates, which significantly influence stock prices [1][2]. Earnings Estimates and Stock Price Impact - The Zacks rating system emphasizes the importance of changing earnings estimates in determining stock price movements, making it a valuable tool for investors [2][3]. - Institutional investors often rely on earnings estimates to assess a company's fair value, leading to significant stock price movements based on their buying or selling actions [3]. Company Performance and Outlook - The upgrade for Westport reflects an improvement in the company's underlying business, suggesting that investor sentiment may drive the stock price higher [4]. - For the fiscal year ending December 2024, Westport is expected to report earnings of -$0.97 per share, a 66.6% change from the previous year, with a recent 8.1% increase in the Zacks Consensus Estimate over the past three months [7]. Zacks Rank System - The Zacks Rank system classifies stocks based on earnings estimate revisions, with a proven track record of generating significant returns, particularly for Zacks Rank 1 stocks [6]. - The upgrade to Zacks Rank 2 places Westport in the top 20% of Zacks-covered stocks, indicating strong potential for market-beating returns in the near term [10].