IO Biotech, Inc. (IOBT) Upgraded to Buy: Here's Why

Core Viewpoint - IO Biotech, Inc. (IOBT) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook based on rising earnings estimates, which significantly influence stock prices [1][3]. Earnings Estimates - The Zacks Consensus Estimate for IO Biotech, Inc. has increased by 14.7% over the past three months, reflecting a positive trend in earnings expectations [8]. - The company is projected to earn -$1.07 per share for the fiscal year ending December 2025, showing no year-over-year change [8]. Zacks Rating System - The Zacks rating system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 (Strong Buy) to Zacks Rank 5 (Strong Sell), and has a strong track record of performance [7]. - Only the top 20% of Zacks-covered stocks receive a "Strong Buy" or "Buy" rating, indicating superior earnings estimate revisions [10]. Market Impact - The upgrade to Zacks Rank 2 positions IO Biotech, Inc. in the top 20% of Zacks-covered stocks, suggesting potential for higher stock prices in the near term due to improved earnings outlook [10]. - Rising earnings estimates are correlated with near-term stock price movements, making the Zacks rating system a valuable tool for investors [4][6].