What Makes Westport (WPRT) a New Buy Stock

Core Viewpoint - Westport Innovations (WPRT) has received a Zacks Rank 2 (Buy) upgrade, indicating a positive outlook on its earnings estimates, which is expected to positively influence its stock price [1][2]. Earnings Estimate Revisions - Analysts have been consistently raising their earnings estimates for Westport, with the Zacks Consensus Estimate increasing by 10.8% over the past three months [7]. - The upgrade reflects an improvement in Westport's underlying business, suggesting that investor sentiment may drive the stock price higher [12]. Zacks Rating System - The Zacks rating system is designed to track earnings estimate revisions, which are strongly correlated with near-term stock price movements, making it a valuable tool for investors [4][6]. - The system maintains a balanced distribution of ratings, with only the top 5% of stocks receiving a 'Strong Buy' rating and the next 15% a 'Buy' rating, ensuring a rigorous evaluation process [8]. Financial Projections - Westport is projected to earn -$0.92 per share for the fiscal year ending December 2024, reflecting a year-over-year change of 68.3% [14]. - The upgrade to Zacks Rank 2 places Westport in the top 20% of Zacks-covered stocks based on earnings estimate revisions, indicating potential for market-beating returns in the near term [16][17].