Itron (ITRI) Upgraded to Strong Buy: Here's What You Should Know

Core Viewpoint - Itron (ITRI) has received an upgrade to a Zacks Rank 1 (Strong Buy) due to an upward trend in earnings estimates, which is a significant factor influencing stock prices [1][2]. Earnings Estimates and Stock Price Movement - The Zacks rating system emphasizes the importance of changing earnings estimates in determining near-term stock price movements, making it a valuable tool for investors [2][3]. - Institutional investors often rely on earnings estimates to assess a company's fair value, leading to stock price movements based on their buying or selling actions [3]. Business Improvement Indicators - The increase in earnings estimates and the Zacks rating upgrade for Itron suggest an improvement in the company's underlying business, which could lead to higher stock prices as investors respond positively [4]. Importance of Earnings Estimate Revisions - Empirical research indicates a strong correlation between earnings estimate revisions and near-term stock movements, highlighting the significance of tracking these revisions for investment decisions [5]. - The Zacks Rank system effectively utilizes earnings estimate revisions to classify stocks, providing a structured approach to investment analysis [6]. Specifics on Itron's Earnings Estimates - For the fiscal year ending December 2025, Itron is expected to earn $6.07 per share, which remains unchanged from the previous year, while the Zacks Consensus Estimate has increased by 11.5% over the past three months [7]. Zacks Rating System Overview - The Zacks rating system maintains a balanced distribution of ratings, with only the top 5% of stocks receiving a "Strong Buy" rating, indicating superior earnings estimate revisions [8][9]. - Itron's upgrade to a Zacks Rank 1 places it among the top 5% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [9].