Adial Pharmaceuticals(US:ADIL) ZACKS·2025-07-10 17:01Core Viewpoint - Adial Pharmaceuticals, Inc. (ADIL) has been upgraded to a Zacks Rank 1 (Strong Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][4]. Earnings Estimates and Revisions - The Zacks rating system is based on the Zacks Consensus Estimate, which aggregates EPS estimates from sell-side analysts for the current and following years [2]. - Over the past three months, the Zacks Consensus Estimate for Adial Pharmaceuticals has increased by 54.8% [9]. Impact of Institutional Investors - Changes in a company's future earnings potential, as reflected in earnings estimate revisions, are strongly correlated with near-term stock price movements. Institutional investors utilize these estimates to determine the fair value of a company's shares, influencing their buying and selling actions [5]. Business Improvement Indicators - The rising earnings estimates and the Zacks rating upgrade for Adial Pharmaceuticals suggest an improvement in the company's underlying business, which is expected to drive the stock price higher [6][11]. Zacks Rank System - The Zacks Rank stock-rating 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 [8]. - The upgrade of Adial Pharmaceuticals to Zacks Rank 1 places it in the top 5% of Zacks-covered stocks, indicating a strong potential for market-beating returns in the near term [10][11].