Aquestive Therapeutics (AQST) Upgraded to Buy: Here's Why

Core Viewpoint - The upgrade of Aquestive Therapeutics (AQST) to a Zacks Rank 2 (Buy) reflects an upward trend in earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Impact - A company's changing earnings picture, particularly through earnings estimate revisions, is strongly correlated with near-term stock price movements [4]. - Institutional investors utilize earnings estimates to calculate the fair value of a company's shares, leading to stock price movements based on changes in these estimates [4]. Company Performance and Outlook - The rising earnings estimates for Aquestive Therapeutics indicate an improvement in the company's underlying business, which is expected to positively influence its stock price [5]. - Over the past three months, the Zacks Consensus Estimate for Aquestive Therapeutics has increased by 8%, with the company projected to earn -$0.64 per share for the fiscal year ending December 2025, showing no year-over-year change [8]. Zacks Rating System - The Zacks Rank stock-rating system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 (Strong Buy) stocks historically generating an average annual return of +25% since 1988 [7]. - The upgrade of Aquestive Therapeutics to a 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].