Atara Biotherapeutics (ATRA) Upgraded to Buy: Here's What You Should Know

Core Viewpoint - Atara Biotherapeutics (ATRA) has received a Zacks Rank 2 (Buy) upgrade, indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][2]. Earnings Estimates and Stock Price Movement - The Zacks rating system is based on the consensus measure of EPS estimates from sell-side analysts, reflecting the company's changing earnings picture [1]. - Changes in earnings estimates are strongly correlated with near-term stock price movements, primarily due to institutional investors adjusting their valuations based on these estimates [3]. Recent Performance and Projections - Atara Biotherapeutics is projected to earn -$12.09 per share for the fiscal year ending December 2024, representing a year-over-year change of 81.5% [5]. - Over the past three months, the Zacks Consensus Estimate for Atara has increased by 23.2%, indicating a positive trend in earnings estimates [5]. Zacks Rating 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 to Zacks Rank 2 places Atara in the top 20% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [7].