Core Viewpoint - CARGO Therapeutics, Inc. (CRGX) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive trend in earnings estimates which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Performance - The Zacks rating system is based on changes in earnings estimates, which are closely correlated with stock price movements, particularly due to institutional investors' reliance on these estimates for valuation [4][6]. - CARGO Therapeutics is projected to earn -$3.75 per share for the fiscal year ending December 2024, reflecting a year-over-year change of 77.3% [8]. - Over the past three months, the Zacks Consensus Estimate for CARGO Therapeutics has increased by 44%, indicating a positive outlook for the company's earnings [8]. Zacks Rating System - The Zacks Rank stock-rating system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 (Strong Buy) stocks historically generating an average annual return of +25% since 1988 [7]. - The upgrade to Zacks Rank 2 places CARGO Therapeutics in the top 20% of Zacks-covered stocks, suggesting a strong potential for market-beating returns in the near term [10].
CARGO Therapeutics, Inc. (CRGX) Upgraded to Buy: What Does It Mean for the Stock?