Nexa Resources (NEXA) Upgraded to Buy: Here's What You Should Know

Core Viewpoint - Nexa Resources S.A. has been upgraded to a Zacks Rank 2 (Buy) due to an upward 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]. - Institutional investors often rely on earnings estimates to determine the fair value of stocks, leading to buying or selling actions that affect stock prices [4]. Company Performance and Outlook - The upgrade in Nexa Resources' rating indicates an improvement in the company's underlying business, which is expected to positively influence its stock price [5][10]. - Analysts have raised their earnings estimates for Nexa Resources, with the Zacks Consensus Estimate increasing by 233.3% over the past three months [8]. 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]. - Nexa Resources' 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].