RAPT Therapeutics(US:RAPT) ZACKSยท2025-07-15 17:01Core Viewpoint - Rapt Therapeutics has been upgraded to a Zacks Rank 1 (Strong Buy) due to an upward trend in earnings estimates, which is a significant factor influencing stock prices [1][4]. Earnings Estimates and Stock Ratings - The Zacks rating system is based solely on a company's changing earnings picture, tracking the Zacks Consensus Estimate for EPS from sell-side analysts [2]. - The Zacks rating upgrade for Rapt Therapeutics indicates a positive outlook on its earnings, likely leading to increased buying pressure and a rise in stock price [4][6]. Impact of Earnings Estimate Revisions - Changes in a company's future earnings potential, as reflected in earnings estimate revisions, are strongly correlated with near-term stock price movements, particularly influenced by institutional investors [5]. - For Rapt Therapeutics, the rising earnings estimates and the rating upgrade suggest an improvement in the company's underlying business, which should drive the stock price higher [6]. Historical Performance of Zacks Rank - The Zacks Rank stock-rating system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [8]. - The upgrade of Rapt Therapeutics to a Zacks Rank 1 places it in the top 5% of Zacks-covered stocks, indicating a strong potential for market-beating returns in the near term [11]. Recent Earnings Estimate Trends - For the fiscal year ending December 2025, Rapt Therapeutics is expected to earn -$2.29 per share, unchanged from the previous year, but analysts have raised their estimates significantly, with a 72.2% increase in the Zacks Consensus Estimate over the past three months [9].