Genmab (GMAB) Upgraded to Strong Buy: Here's Why

Core Viewpoint - Genmab A/S has been upgraded to a Zacks Rank 1 (Strong Buy) due to an upward trend in earnings estimates, which significantly influences stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system emphasizes the importance of earnings estimate revisions, which are strongly correlated with near-term stock price movements [4][6]. - Institutional investors often adjust their valuations based on changes in earnings estimates, leading to buying or selling actions that affect stock prices [4]. Genmab's Earnings Outlook - For the fiscal year ending December 2025, Genmab is expected to earn $1.58 per share, unchanged from the previous year, but the Zacks Consensus Estimate has increased by 9.1% over the past three months [8]. Zacks Rank System - The Zacks Rank 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 [7]. - Genmab's upgrade to Zacks Rank 1 places it in the top 5% of Zacks-covered stocks, indicating strong potential for near-term price increases [10].