Xencor (XNCR) Upgraded to Strong Buy: Here's What You Should Know

Core Viewpoint - Xencor (XNCR) has been upgraded to a Zacks Rank 1 (Strong Buy), indicating a positive trend in earnings estimates which is a significant factor influencing stock prices [1][2]. Earnings Estimates and Stock Price Movement - The Zacks rating system is based on changes in earnings estimates, which are strongly correlated with near-term stock price movements [3][5]. - Institutional investors utilize earnings estimates to determine the fair value of stocks, leading to buying or selling actions that affect stock prices [3]. Company Performance and Outlook - The upgrade for Xencor reflects an improvement in the company's underlying business, suggesting that investor sentiment may drive the stock price higher [4]. - Xencor is projected to earn -$3.68 per share for the fiscal year ending December 2024, representing a year-over-year decline of 76.9% [7]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [6]. - Only the top 5% of Zacks-covered stocks receive a 'Strong Buy' rating, indicating superior earnings estimate revisions [8][9].