Enanta Pharmaceuticals(US:ENTA) ZACKS·2026-02-12 18:02Core Viewpoint - Enanta Pharmaceuticals (ENTA) has received a Zacks Rank upgrade to 2 (Buy), indicating a positive outlook driven by an upward trend in earnings estimates, which significantly influences stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system is based on changes in earnings estimates, which are strongly correlated with near-term stock price movements, particularly due to institutional investors adjusting their valuations based on these estimates [4][6]. - An increase in earnings estimates typically leads to higher fair value for a stock, prompting institutional investors to buy or sell, which in turn affects stock prices [4]. Company Performance Indicators - Enanta Pharmaceuticals is projected to earn -$2.30 per share for the fiscal year ending September 2026, showing no year-over-year change [8]. - Over the past three months, the Zacks Consensus Estimate for Enanta has increased by 16.1%, reflecting a positive trend in earnings estimates [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 generated an average annual return of +25% since 1988 [7]. - The upgrade to Zacks Rank 2 places Enanta in the top 20% of Zacks-covered stocks, indicating a strong potential for market-beating returns in the near term [10].