Essential Utilities(US:WTRG) ZACKS·2025-10-21 17:01Core Viewpoint - Essential Utilities (WTRG) 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 Price Movement - The Zacks rating system emphasizes the correlation between changes in earnings estimates and stock price movements, suggesting that revisions in earnings estimates can lead to significant price changes [4][6]. - Rising earnings estimates for Essential Utilities imply an improvement in the company's underlying business, which could lead to higher stock prices as investors respond positively [5][10]. Zacks Rating System - The Zacks Rank system categorizes 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 [7]. - The upgrade of Essential Utilities to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, indicating a strong potential for market-beating returns in the near term [9][10]. Earnings Estimate Revisions - For the fiscal year ending December 2025, Essential Utilities is expected to earn $2.10 per share, with a slight increase of 0.2% in the Zacks Consensus Estimate over the past three months [8].