Sagimet Biosciences(US:SGMT) ZACKS·2025-10-15 17:01Core Viewpoint - Sagimet Biosciences Inc. (SGMT) has been upgraded to a Zacks Rank 1 (Strong Buy), indicating a positive outlook based on rising earnings estimates, which significantly influence stock prices [1][4][6]. Earnings Estimates - The Zacks rating system focuses on the changing earnings picture, tracking the Zacks Consensus Estimate for EPS from sell-side analysts for the current and following years [2]. - Sagimet Biosciences Inc. is projected to earn -$1.71 per share for the fiscal year ending December 2025, showing no year-over-year change [9]. - Over the past three months, the Zacks Consensus Estimate for Sagimet has increased by 31.6%, reflecting a positive trend in earnings estimates [9]. Impact of Institutional Investors - The relationship between changes in earnings estimates and stock price movements is strongly correlated, with institutional investors playing a significant role in this dynamic [5]. - Institutional investors adjust their valuations based on earnings estimates, leading to buying or selling actions that affect stock prices [5]. Zacks Rating System - 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 Sagimet Biosciences Inc. to 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 [10][11].