Protagonist Therapeutics(PTGX) ZACKS·2024-11-13 18:06Core Viewpoint - Protagonist Therapeutics (PTGX) has received an upgrade to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][4]. Earnings Estimates and Revisions - The Zacks rating system is primarily based on changes in a company's earnings picture, with the Zacks Consensus Estimate tracking EPS estimates from sell-side analysts [2]. - For the fiscal year ending December 2024, Protagonist Therapeutics is expected to earn $2.33 per share, reflecting a substantial increase of 267.6% from the previous year [9]. - Over the past three months, the Zacks Consensus Estimate for Protagonist Therapeutics has risen by 12.4%, indicating a positive trend in earnings estimates [9]. Impact of Institutional Investors - Changes in earnings estimates are strongly correlated with stock price movements, with institutional investors using these estimates to determine the fair value of shares [5]. - The buying and selling activities of institutional investors based on earnings estimates can lead to significant price movements in stocks [5]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 (Strong Buy) stocks historically generating an average annual return of +25% since 1988 [8]. - Protagonist Therapeutics' upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting a strong potential for market-beating returns in the near term [11].