Zurn Water (ZWS) Upgraded to Buy: Here's Why

Core Viewpoint - Zurn Water (ZWS) has received an upgrade to a Zacks Rank 2 (Buy) due to an upward trend in earnings estimates, indicating a positive outlook for the company's stock price [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]. - An increase in earnings estimates typically leads to institutional investors adjusting their valuations, resulting in buying or selling actions that influence stock prices [4]. Company Performance Indicators - Zurn Water is projected to earn $1.36 per share for the fiscal year ending December 2025, reflecting a year-over-year increase of 6.3% [8]. - Over the past three months, the Zacks Consensus Estimate for Zurn Water has risen by 0.5%, indicating a positive trend in earnings expectations [8]. Zacks Rank System - The Zacks Rank system classifies stocks based on earnings estimate revisions, with only the top 20% of stocks receiving a 'Strong Buy' or 'Buy' rating, highlighting their potential for market-beating returns [9][10]. - Zurn Water's upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting a favorable outlook for price movement in the near term [10].