Adial Pharmaceuticals(US:ADIL) ZACKSยท2025-09-01 17:01Core Viewpoint - Adial Pharmaceuticals, Inc. (ADIL) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook based on 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. Institutional investors often adjust their valuations based on these estimates, leading to buying or selling actions that affect stock prices [4][6]. - For the fiscal year ending December 2025, Adial Pharmaceuticals is expected to earn -$0.54 per share, unchanged from the previous year. However, the Zacks Consensus Estimate for the company has increased by 49.5% over the past three months, reflecting a positive trend in earnings outlook [8]. Zacks Rank System - The Zacks Rank stock-rating system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 (Strong Buy) to Zacks Rank 5 (Strong Sell). Historically, Zacks Rank 1 stocks have generated an average annual return of +25% since 1988, showcasing the effectiveness of this system [7]. - The upgrade of Adial Pharmaceuticals to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks regarding estimate revisions, suggesting potential for market-beating returns in the near term [10].