Critical Insights From Arcus Biosciences Analyst Ratings: What You Need To Know

Throughout the last three months, 4 analysts have evaluated Arcus Biosciences RCUS, offering a diverse set of opinions from bullish to bearish.

Summarizing their recent assessments, the table below illustrates the evolving sentiments in the past 30 days and compares them to the preceding months.

In the assessment of 12-month price targets, analysts unveil insights for Arcus Biosciences, presenting an average target of $34.5, a high estimate of $42.00, and a low estimate of $30.00. This current average represents a 20.69% decrease from the previous average price target of $43.50.

Breaking Down Analyst Ratings: A Detailed Examination

The standing of Arcus Biosciences among financial experts becomes clear with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Arcus Biosciences. This information offers a snapshot of how analysts perceive the current state of the company.
• Rating: Offering a comprehensive view, analysts assess stocks qualitatively, spanning from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Arcus Biosciences compared to the broader market.
• Price Targets: Analysts predict movements in price targets, offering estimates for Arcus Biosciences's future value. Examining the current and prior targets offers insights into analysts' evolving expectations.

To gain a panoramic view of Arcus Biosciences's market performance, explore these analyst evaluations alongside essential financial indicators. Stay informed and make judicious decisions using our Ratings Table.

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Delving into Arcus Biosciences's Background

Arcus Biosciences Inc is a clinical-stage biopharmaceutical company. It develops immunotherapies for the treatment of cancer. The company focuses on an ATP-adenosine pathway, which is a key driver of immunosuppression in the tumor microenvironment to create and optimize differentiated small-molecule immuno-oncology product candidates. Its product pipeline includes Domvanalimab, Etrumadenant, AB680, and Zimberelimab. Arcus conducts clinical trials for different types of cancers such as Prostate, Lung, Colorectal, Pancreatic, and others. The company operates through the single segment being the business of developing and commercializing immunotherapies.

Unraveling the Financial Story of Arcus Biosciences

Market Capitalization: Positioned above industry average, the company's market capitalization underscores its superiority in size, indicative of a strong market presence.

Revenue Challenges: Arcus Biosciences's revenue growth over 3 months faced difficulties. As of 30 September, 2023, the company experienced a decline of approximately -3.03%. This indicates a decrease in top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Health Care sector.

Net Margin: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of -221.88%, the company showcases strong profitability and effective cost control.

Return on Equity (ROE): Arcus Biosciences's ROE is below industry averages, indicating potential challenges in efficiently utilizing equity capital. With an ROE of -13.08%, the company may face hurdles in achieving optimal financial returns.

Return on Assets (ROA): Arcus Biosciences's ROA lags behind industry averages, suggesting challenges in maximizing returns from its assets. With an ROA of -5.89%, the company may face hurdles in achieving optimal financial performance.

Debt Management: Arcus Biosciences's debt-to-equity ratio is below the industry average. With a ratio of 0.02, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

The Significance of Analyst Ratings Explained

Analysts work in banking and financial systems and typically specialize in reporting for stocks or defined sectors. Analysts may attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish "analyst ratings" for stocks. Analysts typically rate each stock once per quarter.

Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.

This article was generated by Benzinga's automated content engine and reviewed by an editor.