Castle Biosciences(US:CSTL) ZACKSยท2025-10-21 17:01Core Viewpoint - Castle Biosciences, Inc. (CSTL) has received a Zacks Rank 1 (Strong Buy) due to an upward trend in earnings estimates, indicating a positive outlook for the company's stock price [1][4]. Earnings Estimates and Ratings - The Zacks rating system is primarily based on a company's changing earnings picture, specifically the Zacks Consensus Estimate for EPS from sell-side analysts [2]. - The Zacks rating upgrade reflects optimism about Castle Biosciences' earnings outlook, which is expected to lead to increased buying pressure and a rise in stock price [4][6]. Impact of Earnings Revisions - Changes in a company's future earnings potential, as shown by earnings estimate revisions, are strongly correlated with near-term stock price movements, influenced by institutional investors [5]. - Rising earnings estimates for Castle Biosciences indicate an improvement in the company's underlying business, which should positively affect its stock price [6]. Zacks Rank System - The Zacks Rank 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]. - Castle Biosciences' upgrade to Zacks Rank 1 places it in the top 5% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [11]. Recent Earnings Estimate Revisions - For the fiscal year ending December 2025, Castle Biosciences is expected to earn -$0.64 per share, unchanged from the previous year, but the Zacks Consensus Estimate has increased by 72.1% over the past three months [9].