IO Biotech, Inc. (IOBT) Upgraded to Buy: Here's What You Should Know

Core Viewpoint - IO Biotech, Inc. (IOBT) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook on its 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 the consensus measure of EPS estimates from sell-side analysts, reflecting the company's changing earnings picture [1][2]. - A strong correlation exists between changes in earnings estimates and near-term stock price movements, largely due to institutional investors adjusting their valuations based on these estimates [4][6]. Company Performance and Investor Sentiment - The upgrade for IO Biotech suggests an improvement in the company's underlying business, which could lead to increased buying pressure and a rise in stock price [5][10]. - Over the past three months, the Zacks Consensus Estimate for IO Biotech has increased by 1%, indicating a positive trend in earnings estimates [8]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a proven track record of performance, particularly for Zacks Rank 1 stocks, which have generated an average annual return of +25% since 1988 [7][9]. - IO Biotech's upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting a strong potential for market-beating returns in the near term [10].