Sol-Gel(US:SLGL) ZACKS·2024-08-27 17:01Core Viewpoint - Sol-Gel Technologies Ltd. (SLGL) has received an upgrade to a Zacks Rank 1 (Strong Buy) due to an upward trend in earnings estimates, which is a significant factor influencing stock prices [1][4]. Earnings Estimates and Ratings - The Zacks rating system is primarily based on a company's changing earnings picture, specifically the Zacks Consensus Estimate for EPS from sell-side analysts [2]. - The Zacks rating upgrade for Sol-Gel Technologies indicates a positive outlook on its earnings, which is expected to positively impact its stock price [4][6]. Impact of Earnings Estimate Revisions - There is a strong correlation between changes in earnings estimates and near-term stock price movements, making the Zacks rating system valuable for investors [5][7]. - Rising earnings estimates for Sol-Gel Technologies suggest an improvement in the company's underlying business, which should lead to higher stock prices as investors recognize this trend [6]. Performance of 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 [8]. - Sol-Gel Technologies' 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 [10][11]. Earnings Estimate Data - For the fiscal year ending December 2024, Sol-Gel Technologies is expected to earn -$0.57 per share, reflecting a year-over-year change of 43.6% [9]. - Over the past three months, the Zacks Consensus Estimate for Sol-Gel Technologies has increased by 31.3%, indicating a positive trend in earnings expectations [9].