Alector(US:ALEC) Zacks Investment Researchยท2024-01-25 18:01Core Viewpoint - Alector (ALEC) has received a Zacks Rank 1 (Strong Buy) upgrade, indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][2]. Earnings Estimate Revisions - The Zacks Consensus Estimate for Alector indicates expected earnings of -$1.79 per share for the fiscal year ending December 2023, reflecting a year-over-year decline of 10.5% [5]. - Over the past three months, analysts have raised their earnings estimates for Alector by 17.3% [5]. Impact of Institutional Investors - Changes in earnings estimates are strongly correlated with near-term stock price movements, as institutional investors adjust their valuations based on these estimates, leading to significant buying or selling activity [3]. 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 [4]. - Alector's upgrade to Zacks Rank 1 places it in the top 5% of Zacks-covered stocks, suggesting potential for price appreciation in the near term [7].