All You Need to Know About Immunocore (IMCR) Rating Upgrade to Strong Buy

Zacks Rank Upgrade and Earnings Estimates - Immunocore Holdings PLC Sponsored ADR (IMCR) has been upgraded to a Zacks Rank 1 (Strong Buy), reflecting an upward trend in earnings estimates, which is a powerful force impacting stock prices [1] - The Zacks rating system relies on changes in a company's earnings picture, tracking EPS estimates for the current and following years through the Zacks Consensus Estimate [2] - The upgrade to a Zacks Rank 1 indicates a positive earnings outlook for Immunocore, which could favorably impact its stock price [3] Earnings Estimate Revisions and Stock Price Movement - 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 revisions in these estimates lead to buying or selling, causing stock price movements [4] - Rising earnings estimates and the consequent rating upgrade for Immunocore imply an improvement in the company's underlying business, which investors may reward by pushing the stock higher [5] Zacks Rank System and Historical Performance - The Zacks Rank system classifies stocks into five groups based on four factors related to earnings estimates, with Zacks Rank 1 stocks generating an average annual return of +25% since 1988 [7] - Immunocore's placement in the top 5% of Zacks-covered stocks, with a Zacks Rank 1, indicates superior earnings estimate revisions, making it a strong candidate for market-beating returns [10][11] Immunocore's Earnings Estimate Revisions - Immunocore is expected to earn -$0.94 per share for the fiscal year ending December 2024, representing a year-over-year change of 16.8% [8] - Over the past three months, the Zacks Consensus Estimate for Immunocore has increased by 43.7%, reflecting steady upward revisions by analysts [8] Zacks Rank System's Unique Approach - Unlike Wall Street analysts' rating systems, which tend to be overly optimistic, the Zacks rating system maintains an equal proportion of 'buy' and 'sell' ratings across its universe of over 4,000 stocks [9] - Only the top 5% of Zacks-covered stocks receive a 'Strong Buy' rating, and the next 15% receive a 'Buy' rating, making the Zacks Rank system a reliable indicator of superior earnings estimate revisions [9][10]