Durect (DRRX) Upgraded to Strong Buy: Here's Why

Core Viewpoint - Durect (DRRX) has received an upgrade to a Zacks Rank 1 (Strong Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][3]. 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 [4][6]. - Institutional investors often rely on earnings estimates to determine the fair value of stocks, leading to buying or selling actions that affect stock prices [4]. Durect's Earnings Outlook - For the fiscal year ending December 2024, Durect is expected to earn -$0.50 per share, reflecting a 68.2% change from the previous year's reported number [8]. - Over the past three months, the Zacks Consensus Estimate for Durect has increased by 49%, indicating a positive trend in earnings estimates [8]. 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 [7]. - Durect's upgrade to Zacks Rank 1 places it in the top 5% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [10].