ADC Therapeutics (ADCT) Upgraded to Buy: Here's Why

Core Viewpoint - ADC Therapeutics SA (ADCT) has received a Zacks Rank 2 (Buy) upgrade, indicating a positive trend in earnings estimates which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system is based on changes in earnings estimates, which are closely correlated with near-term stock price movements [4][6]. - Rising earnings estimates for ADC Therapeutics suggest an improvement in the company's underlying business, likely leading to an increase in stock price [5][10]. Zacks Rating System - The Zacks Rank stock-rating 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][9]. - The upgrade to Zacks Rank 2 places ADC Therapeutics in the top 20% of Zacks-covered stocks, indicating a strong potential for market-beating returns in the near term [10]. Earnings Estimate Revisions - For the fiscal year ending December 2025, ADC Therapeutics is expected to earn -$1.47 per share, unchanged from the previous year, but the Zacks Consensus Estimate has increased by 15% over the past three months [8].