All You Need to Know About NextDecade (NEXT) Rating Upgrade to Buy

Core Viewpoint - NextDecade (NEXT) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive trend in earnings estimates which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Impact - 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 significant price movements based on their buying or selling actions [4]. Company Performance and Outlook - The upgrade reflects an improvement in NextDecade's underlying business, suggesting that investors may respond positively by driving the stock price higher [5]. - NextDecade is projected to earn -$0.63 per share for the fiscal year ending December 2024, representing a year-over-year change of 54% [8]. - Over the past three months, the Zacks Consensus Estimate for NextDecade has increased by 0.5%, 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 a strong historical performance, particularly for Zacks Rank 1 stocks which have generated an average annual return of +25% since 1988 [7]. - The upgrade to Zacks Rank 2 places NextDecade in the top 20% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [10].