Applied Therapeutics (APLT) Upgraded to Buy: Here's Why

Core Insights - Applied Therapeutics Inc. (APLT) has received an upgrade to a Zacks Rank 2 (Buy), indicating a positive outlook based on rising earnings estimates [1][4][11] Earnings Estimates and Stock Price Impact - The Zacks rating system is primarily driven by changes in a company's earnings estimates, which are crucial for stock price movements [2][5] - An increase in earnings estimates typically leads to higher fair value calculations by institutional investors, influencing their buying or selling decisions [5][6] Recent Performance and Projections - The Zacks Consensus Estimate for Applied Therapeutics has increased by 11.9% over the past three months, with expectations of -$0.52 earnings per share for the fiscal year ending December 2025, showing no year-over-year change [9] - The upgrade to Zacks Rank 2 places Applied Therapeutics in the top 20% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [10][11] Zacks Rating System Overview - The Zacks Rank system categorizes stocks into five groups based on earnings estimates, with a strong historical performance of Zacks Rank 1 stocks averaging a +25% annual return since 1988 [8] - The system maintains a balanced distribution of ratings, ensuring that only the top 5% of stocks receive a "Strong Buy" rating, while the next 15% are rated as "Buy" [10]