Kezar Life Sciences(US:KZR) ZACKS·2025-09-17 17:01Core Viewpoint - Kezar Life Sciences, Inc. (KZR) has received an upgrade to a Zacks Rank 2 (Buy), indicating a positive trend in earnings estimates which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Performance - The Zacks rating system tracks the Zacks Consensus Estimate, which reflects EPS estimates from sell-side analysts for the current and following years, highlighting the importance of earnings revisions in stock valuation [1][4]. - A strong correlation exists between changes in earnings estimates and near-term stock price movements, primarily due to institutional investors adjusting their valuations based on these estimates [4][6]. Recent Developments for Kezar Life Sciences - For the fiscal year ending December 2025, Kezar Life Sciences is expected to earn -$7.22 per share, which remains unchanged from the previous year, but analysts have raised their estimates by 3.4% over the past three months [8]. - The upgrade to Zacks Rank 2 places Kezar Life Sciences in the top 20% of Zacks-covered stocks, suggesting potential for higher stock prices in the near term [10]. Zacks Rating System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a proven track record of Zacks Rank 1 stocks generating an average annual return of +25% since 1988 [7][9]. - The system maintains a balanced distribution of "buy" and "sell" ratings, ensuring that only the top 5% of stocks receive a "Strong Buy" rating, indicating superior earnings estimate revisions [9][10].