Core Viewpoint - Castle Biosciences, Inc. is set to report its fourth-quarter and full-year 2024 results on February 27, with revenue expectations of $85.7 million and earnings of 11 cents per share [1][10]. Group 1: Company Performance - In the past year, shares of Castle Biosciences have increased by 5.1%, contrasting with an industry decline of 8.7% [2]. - The company reported 24,071 total test reports in the fourth quarter of 2024, indicating strong business performance [5]. - Castle Biosciences raised its revenue guidance for 2024, now expecting to meet or exceed the top end of its guidance of $320-330 million [5]. Group 2: Revenue Drivers - The company's revenues for the upcoming quarter are likely to be driven by higher sales from its innovative test solutions for dermatologic cancers, Barrett's esophagus, uveal melanoma, and mental health conditions [4]. - Activities related to research, development, and commercialization of new tests may have increased operating expenses in the quarter [6]. Group 3: Earnings Surprise History - Castle Biosciences has a strong history of earnings surprises, having beaten earnings estimates in each of the last four quarters with an average surprise of 172.72% [9]. - In the last reported quarter, the company achieved an earnings surprise of 233.33% [9]. Group 4: Earnings Expectations - The Earnings ESP for Castle Biosciences is 0.00%, as both the Most Accurate Estimate and the Zacks Consensus Estimate are at 11 cents [11]. - The company currently holds a Zacks Rank of 2 (Buy) [11].

Core Viewpoint - Castle Biosciences, Inc. is expected to report a year-over-year increase in earnings and revenues for the quarter ended December 2024, with significant attention on how actual results compare to consensus estimates [1][2]. Earnings Expectations - The upcoming earnings report is anticipated to be released on February 27, 2025, with a consensus EPS estimate of $0.11, reflecting a year-over-year increase of +210% [3]. - Revenues are projected to reach $85.75 million, which is a 29.7% increase from the same quarter last year [3]. Estimate Revisions - The consensus EPS estimate has been revised 86.79% higher in the last 30 days, indicating a significant reassessment by analysts [4]. - The Most Accurate Estimate aligns with the Zacks Consensus Estimate, resulting in an Earnings ESP of 0% [10][11]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that a positive or negative reading indicates the likelihood of actual earnings deviating from consensus estimates, with a strong predictive power for positive readings [7][8]. - Castle Biosciences currently holds a Zacks Rank of 2 (Buy), but the combination with an Earnings ESP of 0% makes it challenging to predict an earnings beat [11]. Historical Performance - In the last reported quarter, Castle Biosciences exceeded the consensus EPS estimate by delivering earnings of $0.08 when a loss of $0.06 was expected, resulting in a surprise of +233.33% [12]. - The company has successfully beaten consensus EPS estimates in the last four quarters [13]. Market Context - The broader industry context includes Regenxbio, which is expected to report a loss of $1.26 per share for the same quarter, indicating a year-over-year change of +11.9% [17]. - Regenxbio's revenue is expected to be $22.3 million, a slight increase of 0.4% from the previous year, with a consensus EPS estimate revised 20.4% higher recently [18].

Group 1 - Castle Biosciences, Inc. (CSTL) shares have increased by 2.1% over the past four weeks, closing at $27.19, with a mean price target of $41 indicating a potential upside of 50.8% [1] - The average price targets from analysts range from a low of $32 to a high of $50, with a standard deviation of $5.22, suggesting a variability in estimates [2] - Analysts show strong agreement on CSTL's ability to report better earnings than previously predicted, which supports the potential for stock upside [4][9] Group 2 - The Zacks Consensus Estimate for CSTL has increased by 17.9% due to two upward revisions in earnings estimates over the last 30 days, with no negative revisions [10] - CSTL holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate factors, indicating strong potential for near-term upside [11] - While consensus price targets may not be reliable for predicting the extent of gains, they can provide a directional guide for price movement [12]

Castle Biosciences, Inc. (CSTL) appears an attractive pick given a noticeable improvement in the company's earnings outlook. The stock has been a strong performer lately, and the momentum might continue with analysts still raising their earnings estimates for the company.Analysts' growing optimism on the earnings prospects of this company is driving estimates higher, which should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate re ...

Core Viewpoint - Castle Biosciences, Inc. (CSTL) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook driven by an upward trend in earnings estimates [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system emphasizes the correlation between changes in earnings estimates and stock price movements, suggesting that institutional investors react to these revisions, impacting stock valuations [4][6]. - The recent upgrade reflects an improvement in Castle Biosciences' underlying business, which is expected to lead to increased buying pressure and a rise in stock price [5][10]. Earnings Estimate Revisions - For the fiscal year ending December 2024, Castle Biosciences is projected to earn $0.45 per share, representing a 121% increase from the previous year's reported figure [8]. - Over the past three months, the Zacks Consensus Estimate for Castle Biosciences has risen by 19.7%, indicating a positive trend in earnings expectations [8]. Zacks Rank System - The Zacks Rank system categorizes stocks based on earnings estimate revisions, with only the top 20% of stocks receiving a 'Strong Buy' or 'Buy' rating, highlighting their potential for market-beating returns [9][10]. - The upgrade of Castle Biosciences to a Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting a favorable outlook for near-term stock performance [10].

Core Viewpoint - Castle Biosciences, Inc. (CSTL) has seen a 1.5% increase in share price over the past four weeks, closing at $27.06, with a mean price target of $41 indicating a potential upside of 51.5% [1] Price Targets - The average price target consists of nine estimates ranging from a low of $32 to a high of $50, with a standard deviation of $5.22, suggesting a potential increase of 18.3% to 84.8% from the current price [2] - A low standard deviation indicates a high degree of agreement among analysts regarding the stock's price movement, which can serve as a starting point for further research [7] Analyst Sentiment - Analysts have shown increasing optimism about CSTL's earnings prospects, as evidenced by a strong consensus in revising EPS estimates higher, which correlates with potential stock price increases [9] - Over the last 30 days, the Zacks Consensus Estimate for the current year has risen by 7.6%, with no negative revisions [10] Zacks Rank - CSTL holds a Zacks Rank 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks based on earnings estimates, indicating strong potential for upside in the near term [11] Caution on Price Targets - While price targets are a common metric for investors, relying solely on them may not be prudent due to historical inaccuracies in predicting actual stock price movements [5][8]

The primary purpose of a business is to generate profits that can be reinvested in expansion or utilized for rewarding shareholders. Net profit margin is an effective tool to measure the profits reaped by a business.A higher net margin underlines a company’s efficiency in translating sales into actual profits. Moreover, this metric gives insight into how well a company is run and the headwinds weighing on it. Castle Biosciences, Inc. (CSTL) , OppFi, Inc. (OPFI) , GigaCloud Technology Inc. (GCT) and Qifu Tec ...

Investors seek companies that consistently generate profits. One of the best metrics to measure profitability is the net profit margin. This metric highlights a company's ability to convert sales into actual profits, providing insights into operational efficiency and management quality. Castle Biosciences, Inc. (CSTL) , Qifu Technology, Inc. (QFIN) , Euroseas Ltd. (ESEA) and Strategic Education, Inc. (STRA) boast solid net profit margins.Net Profit Margin = Net profit/Sales * 100.Net profit represents the a ...

Castle Biosciences, Inc. (CSTL) closed the last trading session at $28.87, gaining 2.7% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. The mean price target of $41 indicates a 42% upside potential.The average comprises nine short-term price targets ranging from a low of $32 to a high of $50, with a standard deviation of $5.22. While the lowest estimate indicates an increase of 10.8% from the current price ...

When it comes to short-term investing or trading, they say "the trend is your friend." And there's no denying that this is the most profitable strategy. But making sure of the sustainability of a trend to profit from it is easier said than done.The trend often reverses before exiting the trade, leading to a short-term capital loss for investors. So, for a profitable trade, one should confirm factors such as sound fundamentals, positive earnings estimate revisions, etc. that could keep the momentum in the st ...