Woodward (WWD) Upgraded to Buy: Here's Why

Core Viewpoint - Woodward (WWD) has been upgraded to a Zacks Rank 2 (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 the consensus measure of EPS estimates from sell-side analysts, reflecting the company's changing earnings picture [1][4]. - Changes in earnings estimates are strongly correlated with near-term stock price movements, particularly due to institutional investors adjusting their valuations based on these estimates [4][6]. Recent Performance and Outlook - For the fiscal year ending September 2025, Woodward is expected to earn $6.07 per share, which represents a -0.7% change from the previous year [8]. - Over the past three months, the Zacks Consensus Estimate for Woodward has increased by 2.9%, 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 (Strong Buy) stocks historically generating an average annual return of +25% since 1988 [7]. - The upgrade of Woodward to a Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [10].