Core Viewpoint - Akebia Therapeutics (AKBA) has been upgraded to a Zacks Rank 1 (Strong Buy) due to a positive trend in earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Performance - The Zacks rating system tracks the Zacks Consensus Estimate, which reflects EPS estimates from sell-side analysts for the current and following years, indicating a company's earnings outlook [1][2]. - A strong correlation exists between changes in earnings estimates and near-term stock price movements, influenced by institutional investors who adjust their valuations based on these estimates [4][6]. Recent Developments for Akebia Therapeutics - Akebia Therapeutics has seen a 65.4% increase in the Zacks Consensus Estimate over the past three months, with expected earnings of -$0.05 per share for the fiscal year ending December 2025, unchanged from the previous year [8]. - The upgrade to Zacks Rank 1 places Akebia in the top 5% of Zacks-covered stocks, suggesting potential for higher stock prices in the near term due to improved earnings outlook [10]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [7][9]. - The system maintains a balanced distribution of "buy" and "sell" ratings, ensuring that only the top 20% of stocks are considered for superior earnings estimate revisions [9][10].