All You Need to Know About Arbutus (ABUS) Rating Upgrade to Buy

Core Viewpoint - Arbutus Biopharma (ABUS) has received an upgrade to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system reflects 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, thus affecting stock prices [4]. Recent Earnings Estimate Revisions - For the fiscal year ending December 2025, Arbutus is expected to earn -$0.29 per share, representing a 23.7% change from the previous year's reported figure [8]. - Over the past three months, the Zacks Consensus Estimate for Arbutus has increased by 13.7%, indicating a positive trend in earnings outlook [8]. Zacks Rank System - The Zacks Rank system classifies stocks based on earnings estimates into five groups, with Zacks Rank 1 (Strong Buy) to Zacks Rank 5 (Strong Sell), and has shown a strong track record of performance [7][9]. - Only the top 20% of Zacks-covered stocks receive a 'Strong Buy' or 'Buy' rating, indicating superior earnings estimate revisions, positioning Arbutus favorably for potential market-beating returns [10].