iTeos Therapeutics(ITOS) ZACKS·2025-01-13 18:01Core Viewpoint - iTeos Therapeutics, Inc. (ITOS) 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][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system is based on changes in earnings estimates, which are strongly correlated with near-term stock price movements [4][6]. - Institutional investors often rely on earnings estimates to determine the fair value of a company's shares, leading to buying or selling actions that affect stock prices [4]. Company Performance and Outlook - The upgrade indicates a positive outlook for iTeos Therapeutics' earnings, suggesting potential buying pressure and an increase in stock price [3][5]. - The company is expected to report earnings of -$3.49 per share for the fiscal year ending December 2024, reflecting a year-over-year change of -10.8% [8]. - Over the past three months, the Zacks Consensus Estimate for iTeos Therapeutics has increased by 26.9%, indicating a positive trend in earnings estimates [8]. Zacks Rating System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with only the top 20% receiving a 'Strong Buy' or 'Buy' rating [9][10]. - The upgrade to Zacks Rank 2 places iTeos Therapeutics in the top 20% of Zacks-covered stocks, suggesting it is a strong candidate for market-beating returns in the near term [10].