Xeris Biopharma (XERS) Upgraded to Buy: Here's Why

Core Viewpoint - Xeris Biopharma (XERS) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive shift in earnings estimates which is a significant factor influencing stock prices [1][2]. Earnings Estimates and Stock Price Movement - The Zacks rating system is based on changes in earnings estimates, which are strongly correlated with stock price movements, particularly due to institutional investors adjusting their valuations based on these estimates [3][5]. - An increase in earnings estimates typically leads to higher fair value for a stock, prompting institutional investors to buy or sell, thus affecting stock prices [3]. Company Performance Indicators - The upgrade for Xeris Biopharma suggests an improvement in the company's underlying business, which should encourage investors to drive the stock price higher [4]. - The Zacks Consensus Estimate for Xeris Biopharma has increased by 3.6% over the past three months, with expectations of earnings at -$0.05 per share for the fiscal year ending December 2025, indicating no year-over-year change [7]. Zacks Rating System Overview - 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 averaged a +25% annual return since 1988 [6][8]. - The upgrade to Zacks Rank 2 places Xeris Biopharma in the top 20% of Zacks-covered stocks, suggesting a strong potential for market-beating returns in the near term [9].