Sutro Biopharma (STRO) Upgraded to Buy: Here's What You Should Know

Core Insights - Sutro Biopharma, Inc. (STRO) 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][2][10] Earnings Estimates and Stock Price Movement - The change in a company's future earnings potential, as indicated by earnings estimate revisions, is strongly correlated with near-term stock price movements, particularly influenced by institutional investors [3][5] - Rising earnings estimates and the subsequent rating upgrade for Sutro Biopharma suggest an improvement in the company's underlying business, which could lead to higher stock prices [4][10] Zacks Rating System - The Zacks Rank stock-rating system classifies stocks into five groups based on earnings estimates, with a strong historical performance, particularly for Zacks Rank 1 stocks, which have generated an average annual return of +25% since 1988 [6][8] - The Zacks rating system maintains a balanced distribution of 'buy' and 'sell' ratings, ensuring that only the top 20% of stocks are recognized for superior earnings estimate revisions [8][9] Earnings Estimate Revisions for Sutro Biopharma - For the fiscal year ending December 2024, Sutro Biopharma is expected to earn -$2.89 per share, reflecting a change of -51.3% from the previous year, although analysts have raised their estimates by 2.3% over the past three months [7]