Algonquin Power & Utilities (US:AQN) ZACKS·2026-01-12 18:01Core Viewpoint - Algonquin Power & Utilities (AQN) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook driven by an upward trend in earnings estimates, which significantly impacts stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system emphasizes the importance of changing earnings estimates, which are closely correlated with near-term stock price movements [4][6]. - Institutional investors utilize earnings estimates to determine the fair value of stocks, leading to buying or selling actions that affect stock prices [4]. Business Improvement Indicators - The rising earnings estimates and the Zacks rating upgrade suggest an improvement in Algonquin Power & Utilities' underlying business, which could lead to increased stock prices as investors respond positively [5][10]. Earnings Estimate Revisions - For the fiscal year ending December 2025, Algonquin Power & Utilities is expected to earn $0.31 per share, consistent with the previous year's figure, while the Zacks Consensus Estimate has increased by 0.7% over the past three months [8]. Zacks Rank System Overview - 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 averaged a +25% annual return since 1988 [7]. - The upgrade of Algonquin Power & Utilities 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].