What Makes Sage Therapeutics (SAGE) a New Buy Stock

Core Viewpoint - Sage Therapeutics, Inc. (SAGE) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook based on upward revisions in earnings estimates, which significantly influence stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system emphasizes the importance of earnings estimate revisions, which have shown a strong correlation with near-term stock price movements [4][6]. - Institutional investors utilize earnings estimates to determine the fair value of stocks, leading to buying or selling actions that affect stock prices [4]. Company Performance and Outlook - The recent upgrade for Sage Therapeutics reflects an improvement in the company's underlying business, suggesting that investors may respond positively by driving the stock price higher [5]. - Analysts have raised their earnings estimates for Sage Therapeutics, with the Zacks Consensus Estimate increasing by 1.4% over the past three months [8]. Zacks Rank System - The Zacks Rank system categorizes stocks based on earnings estimates, with only the top 20% of stocks receiving a "Strong Buy" or "Buy" rating, indicating superior earnings estimate revisions [9][10]. - Sage Therapeutics' upgrade to Zacks Rank 2 places it within this top 20%, suggesting potential for market-beating returns in the near term [10].