Lyell(LYEL) ZACKS·2024-11-14 18:00Core Viewpoint - Lyell Immunopharma (LYEL) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook driven by rising earnings estimates, which significantly influence stock prices [1][3]. Earnings Estimates and Stock Performance - The Zacks rating system emphasizes the importance of earnings estimate revisions, which are strongly correlated with near-term stock price movements [4][6]. - For the fiscal year ending December 2024, Lyell Immunopharma is projected to earn -$0.80 per share, reflecting a 14% change from the previous year's reported figure [8]. - Over the past three months, the Zacks Consensus Estimate for Lyell Immunopharma has increased by 6.3%, indicating a positive trend in earnings expectations [8]. Institutional Investor Influence - Institutional investors play a role in the relationship between earnings estimates and stock price movements, as they adjust their valuations based on these estimates, leading to significant buying or selling actions [4]. Zacks Rank System - The Zacks Rank system categorizes stocks into five groups based on earnings estimates, with Zacks Rank 1 (Strong Buy) stocks historically generating an average annual return of +25% since 1988 [7]. - The upgrade of Lyell Immunopharma to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [10].