Foghorn Therapeutics (FHTX) Upgraded to Strong Buy: Here's What You Should Know

Core Viewpoint - Foghorn Therapeutics Inc. (FHTX) has received a Zacks Rank 1 (Strong Buy) upgrade, indicating a positive outlook for its earnings estimates, which is a significant factor influencing stock prices [1][4]. Earnings Estimates and Revisions - The Zacks rating system is based on the Zacks Consensus Estimate, which reflects EPS estimates from sell-side analysts for the current and following years [2]. - A strong correlation exists between changes in earnings estimates and near-term stock price movements, making the Zacks rating system valuable for investors [3][5]. - For the fiscal year ending December 2024, Foghorn Therapeutics is expected to earn -$1.53 per share, representing a 34.6% change from the previous year [9]. - Over the past three months, the Zacks Consensus Estimate for Foghorn Therapeutics has increased by 41.5% [9]. Investment Implications - The upgrade to Zacks Rank 1 suggests an improvement in Foghorn Therapeutics' underlying business, which is likely to attract buying pressure and increase its stock price [4][6]. - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [8]. - Being in the top 5% of Zacks-covered stocks indicates superior earnings estimate revisions, positioning Foghorn Therapeutics as a strong candidate for market-beating returns in the near term [10][11].