What Makes Arcutis Biotherapeutics (ARQT) a New Strong Buy Stock

Core Viewpoint - Arcutis Biotherapeutics, Inc. (ARQT) has been upgraded to a Zacks Rank 1 (Strong Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][4]. Earnings Estimates and Stock Performance - The Zacks rating system is based on changes in a company's earnings estimates, which are tracked through the Zacks Consensus Estimate [2]. - A strong correlation exists between revisions in earnings estimates and near-term stock price movements, making the Zacks rating system valuable for investors [3][5]. - The recent upgrade for Arcutis Biotherapeutics reflects an improvement in its underlying business, which is expected to drive the stock price higher [6]. Earnings Estimate Revisions - Analysts have raised their earnings estimates for Arcutis Biotherapeutics, with the Zacks Consensus Estimate increasing by 19.9% over the past three months [9]. - The company is projected to earn -$0.44 per share for the fiscal year ending December 2025, indicating no year-over-year change [9]. 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]. - Only the top 5% of Zacks-covered stocks receive a "Strong Buy" rating, positioning Arcutis Biotherapeutics among the best candidates for market-beating returns in the near term [10][11].