Badger Meter (BMI) Upgraded to Buy: Here's What You Should Know

Core Viewpoint - Badger Meter (BMI) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Performance - The Zacks rating system is based on changes in earnings estimates, which are closely correlated with stock price movements [4][6]. - An increase in earnings estimates typically leads to higher fair value calculations by institutional investors, resulting in buying or selling actions that affect stock prices [4]. Company Performance Indicators - For the fiscal year ending December 2025, Badger Meter is expected to earn $4.80 per share, with a 1.7% increase in the Zacks Consensus Estimate over the past three months [8]. - The upgrade reflects an improvement in Badger Meter's underlying business, suggesting that investors may push the stock price higher due to this positive trend [5]. Zacks Rank System - 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 generated an average annual return of +25% since 1988 [7]. - Badger Meter's upgrade 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 [10].