Investors might want to bet on Xperi (XPER) , as it has been recently upgraded to a Zacks Rank #1 (Strong Buy). This upgrade primarily reflects an upward trend in earnings estimates, which is one of the most powerful forces impacting stock prices.The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate.The power of a changing e ...

Core Viewpoint - Xperi (XPER) has received an upgrade to a Zacks Rank 1 (Strong Buy) due to an upward trend in earnings estimates, indicating a positive outlook for the company's stock price [1][2]. Earnings Estimates and Stock Price Movement - The Zacks rating system is based on changes in a company's earnings picture, which is a significant factor influencing stock prices [2][3]. - A strong correlation exists between earnings estimate revisions and near-term stock movements, largely driven by institutional investors who adjust their valuations based on these estimates [3]. Company Performance and Outlook - The upgrade for Xperi suggests an improvement in the company's underlying business, which is expected to be reflected in higher stock prices as investors respond positively [4]. - For the fiscal year ending December 2025, Xperi is projected to earn $0.84 per share, with a notable increase of 119% in the Zacks Consensus Estimate over the past three months [7]. 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 [6]. - Xperi's upgrade to Zacks Rank 1 places it in the top 5% of Zacks-covered stocks, indicating a strong potential for market-beating returns in the near term [9].