Turnstone Biologics Corp. (TSBX) Upgraded to Buy: What Does It Mean for the Stock?

Core Viewpoint - Turnstone Biologics Corp. (TSBX) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook driven by rising earnings estimates, which significantly influence stock prices [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system emphasizes the importance of earnings estimate revisions, which are strongly correlated with near-term stock price movements [4][6]. - An increase in earnings estimates typically leads to higher fair value calculations by institutional investors, resulting in buying or selling actions that affect stock prices [4]. Company-Specific Insights - For the fiscal year ending December 2024, Turnstone Biologics Corp. is expected to report earnings of -$3.32 per share, reflecting a 30.5% change from the previous year [8]. - Over the past three months, the Zacks Consensus Estimate for Turnstone Biologics has increased by 59.7%, indicating a positive trend in earnings outlook [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, highlighting superior earnings estimate revisions [9][10]. - The upgrade of Turnstone Biologics to a Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [10].