What Makes Aligos Therapeutics (ALGS) a New Buy Stock

Core Viewpoint - Aligos Therapeutics, Inc. (ALGS) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][2]. Earnings Estimates and Revisions - The Zacks Consensus Estimate for Aligos Therapeutics for the fiscal year ending December 2024 is projected at -$0.27 per share, reflecting an 80.2% change from the previous year's reported figure [5]. - Over the past three months, analysts have raised their earnings estimates for Aligos Therapeutics, resulting in a 64.2% increase in the Zacks Consensus Estimate [5]. Impact of Institutional Investors - Changes in earnings estimates are strongly correlated with stock price movements, primarily due to institutional investors who adjust their valuations based on these estimates [3]. - An increase in earnings estimates typically leads to higher fair value calculations for stocks, prompting institutional investors to buy or sell accordingly, which influences stock price movements [3]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a proven track record of Zacks Rank 1 stocks generating an average annual return of +25% since 1988 [4]. - The upgrade of Aligos Therapeutics to a Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, indicating a strong potential for market-beating returns in the near term [7].