Core Viewpoint - Castle Biosciences, Inc. (CSTL) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook driven by an upward trend in earnings estimates [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system emphasizes the correlation between changes in earnings estimates and stock price movements, suggesting that institutional investors react to these revisions, impacting stock valuations [4][6]. - The recent upgrade reflects an improvement in Castle Biosciences' underlying business, which is expected to lead to increased buying pressure and a rise in stock price [5][10]. Earnings Estimate Revisions - For the fiscal year ending December 2024, Castle Biosciences is projected to earn $0.45 per share, representing a 121% increase from the previous year's reported figure [8]. - Over the past three months, the Zacks Consensus Estimate for Castle Biosciences has risen by 19.7%, indicating a positive trend in earnings expectations [8]. Zacks Rank System - The Zacks Rank system categorizes stocks based on earnings estimate revisions, with only the top 20% of stocks receiving a 'Strong Buy' or 'Buy' rating, highlighting their potential for market-beating returns [9][10]. - The upgrade of Castle Biosciences to a Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting a favorable outlook for near-term stock performance [10].
Castle Biosciences (CSTL) Upgraded to Buy: Here's Why