What Makes Xenia Hotels & Resorts (XHR) a New Buy Stock

Core Viewpoint - Xenia Hotels & Resorts (XHR) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook driven by an upward trend in earnings estimates [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system emphasizes the importance of changing earnings estimates, which are strongly correlated with near-term stock price movements [4][6]. - Institutional investors often base their valuation models on earnings estimates, leading to significant buying or selling activity that affects stock prices [4]. Company Performance Indicators - For the fiscal year ending December 2024, Xenia Hotels & Resorts is expected to earn $1.59 per share, reflecting a 3.3% increase from the previous year [8]. - Over the past three months, the Zacks Consensus Estimate for Xenia Hotels & Resorts has increased by 0.6%, indicating a positive trend in earnings expectations [8]. Zacks Rating 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 of Xenia Hotels & Resorts 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].