Arcturus Therapeutics (ARCT) Upgraded to Buy: What Does It Mean for the Stock?

Core Viewpoint - Arcturus Therapeutics has been upgraded to a Zacks Rank 2 (Buy) due to an upward trend in earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system emphasizes the importance of changing earnings estimates in determining near-term stock price movements, making it a valuable tool for investors [2][4]. - The correlation between earnings estimate revisions and stock price movements is strong, particularly due to the actions of institutional investors who adjust their valuations based on these estimates [4]. Business Outlook and Investor Sentiment - The upgrade in rating for Arcturus Therapeutics reflects an improvement in the company's underlying business, suggesting that investors may respond positively by driving the stock price higher [5]. - Analysts have raised their earnings estimates for Arcturus Therapeutics, with the Zacks Consensus Estimate increasing by 45.1% over the past three months [8]. Zacks Rank System - The Zacks Rank system categorizes stocks based on earnings estimates into five groups, with a strong historical performance, particularly for Zacks Rank 1 stocks, which have averaged a +25% annual return since 1988 [7]. - Arcturus Therapeutics' upgrade to 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 [10].