Spero Therapeutics (SPRO) Upgraded to Buy: Here's What You Should Know

Core Viewpoint - Spero Therapeutics, Inc. (SPRO) has received an upgrade 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 Impact - The Zacks rating system is based on changes in earnings estimates, which are strongly correlated with near-term stock price movements [4][6]. - Rising earnings estimates for Spero Therapeutics indicate an improvement in the company's underlying business, likely leading to an increase in stock price [5][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 [7][9]. - The upgrade of Spero Therapeutics to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [10]. Earnings Estimate Revisions for Spero Therapeutics - For the fiscal year ending December 2024, Spero Therapeutics is expected to earn -$1.20 per share, reflecting a year-over-year change of -379.1% [8]. - Over the past three months, the Zacks Consensus Estimate for Spero Therapeutics has increased by 48.5%, indicating positive sentiment among analysts [8].