All You Need to Know About Xencor (XNCR) Rating Upgrade to Buy

Core Viewpoint - Xencor (XNCR) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates, which significantly influence stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system emphasizes the importance of earnings estimate revisions, which are strongly correlated with near-term stock price movements [4][6]. - Institutional investors often adjust their valuations based on changes in earnings estimates, leading to significant stock price movements [4]. Company Performance and Outlook - Xencor is projected to earn -$3.71 per share for the fiscal year ending December 2024, reflecting a year-over-year decline of 78.4% [8]. - Despite the negative earnings projection, analysts have raised their estimates for Xencor, with the Zacks Consensus Estimate increasing by 11.1% over the past three months [8]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with only the top 20% receiving a 'Strong Buy' or 'Buy' rating [9][10]. - Xencor's upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [11].