Zacks Rating Upgrade - Clearside Biomedical has been upgraded to a Zacks Rank 2 (Buy) due to an upward trend in earnings estimates, which is a powerful force impacting stock prices [1] - The Zacks rating system is highly useful for individual investors as it tracks the Zacks Consensus Estimate for current and future years, providing a more objective measure compared to Wall Street analysts' subjective ratings [2][3] Earnings Estimate Revisions and Stock Price Correlation - Changes in a company's future earnings potential, reflected in earnings estimate revisions, are strongly correlated with near-term stock price movements [4] - Institutional investors use earnings estimates to calculate the fair value of a company's shares, and their bulk investment actions lead to price movements [4] - For Clearside Biomedical, rising earnings estimates and the consequent rating upgrade indicate an improvement in the company's underlying business, which should push the stock higher [5] Zacks Rank System and Earnings Estimate Revisions - The Zacks Rank system uses four factors related to earnings estimates to classify stocks into five groups, with Zacks Rank 1 stocks generating an average annual return of +25% since 1988 [7] - Tracking earnings estimate revisions can be rewarding, as empirical research shows a strong correlation between these revisions and near-term stock movements [6] Clearside Biomedical's Earnings Estimates - For the fiscal year ending December 2024, Clearside Biomedical is expected to earn -$0.52 per share, a change of 1.9% from the year-ago reported number [8] - Over the past three months, the Zacks Consensus Estimate for Clearside Biomedical has increased by 6.6% [8] Zacks Rating System's Superiority - The Zacks rating system maintains an equal proportion of 'buy' and 'sell' ratings for its universe of over 4000 stocks, with only the top 5% receiving a 'Strong Buy' rating and the next 15% receiving a 'Buy' rating [9] - Clearside Biomedical's upgrade to a Zacks Rank 2 positions it in the top 20% of Zacks-covered stocks, indicating superior earnings estimate revision features and potential for market-beating returns in the near term [10]
All You Need to Know About Clearside Biomedical (CLSD) Rating Upgrade to Buy
Clearside Biomedical(CLSD) ZACKS·2024-11-15 18:05