Clearside Biomedical (CLSD) Upgraded to Buy: Here's What You Should Know

Core Viewpoint - Clearside Biomedical, Inc. (CLSD) 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 Price Movement - The Zacks rating system is based on changes in earnings estimates, which are strongly correlated with near-term stock price movements [4][6]. - Institutional investors utilize earnings estimates to determine the fair value of stocks, leading to price movements based on their buying or selling activities [4]. Company Performance Indicators - The upgrade for Clearside Biomedical suggests an improvement in the company's underlying business, which is expected to be reflected in a higher stock price [5]. - The Zacks Consensus Estimate for Clearside Biomedical has increased by 15.1% over the past three months, with an expected earnings per share of -$0.42 for the fiscal year ending December 2025, representing a year-over-year change of 10.6% [8]. Zacks Rank System - The Zacks Rank 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]. - The upgrade to Zacks Rank 2 places Clearside Biomedical in the top 20% of Zacks-covered stocks, indicating a strong potential for market-beating returns in the near term [10].