Wall Street Analysts Believe Arcutis Biotherapeutics (ARQT) Could Rally 37.43%: Here's is How to Trade

Core Viewpoint - Arcutis Biotherapeutics, Inc. (ARQT) shows potential for significant upside, with a mean price target of $19.13 indicating a 37.4$13.92 [1] Price Targets and Estimates - The mean estimate consists of eight short-term price targets with a standard deviation of $4.79, indicating variability among analysts; the lowest estimate is$12 (13.8% decline), while the highest is $29 (108.3% increase) [2] - A low standard deviation suggests a high degree of agreement among analysts regarding the stock's price movement direction, which can serve as a starting point for further research [7] Earnings Estimates - Analysts are optimistic about ARQT's earnings prospects, as indicated by a positive trend in earnings estimate revisions; the Zacks Consensus Estimate for the current year has increased by 8.9% over the last 30 days, with no negative revisions [10][9] - ARQT holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimates, which supports the stock's potential upside [11] Analyst Behavior - Analysts often set overly optimistic price targets due to business incentives, which can lead to inflated estimates; thus, investors should approach price targets with skepticism [6][8]