David focuses on growth & momentum stocks that are reasonably priced and likely to outperform the market over the long-term. He is a long term investor of quality stocks and uses options for strategy. David told investors to buy in March 2009 at the bottom of the financial crisis. The S&P 500 increased 367% and the Nasdaq increased 685% from 2009 through 2019. He wants to help make people money by investing in high-quality growth stocks.Analyst’s Disclosure:I/we have no stock, option or similar derivative p ...

Core Viewpoint - The article emphasizes the importance of investing in high-quality growth and momentum stocks that are reasonably priced, with a focus on long-term performance and market outperformance [1] Group 1: Investment Strategy - The investment strategy involves focusing on growth and momentum stocks that are expected to outperform the market over the long term [1] - The analyst has a history of advising investors to buy at market lows, specifically mentioning a recommendation in March 2009 during the financial crisis, which led to significant market gains [1] Group 2: Market Performance - From 2009 to 2019, the S&P 500 increased by 367%, while the Nasdaq saw an increase of 685%, highlighting the potential for substantial returns in the stock market [1]

Core Insights - Crexendo, Inc. has been recognized with 42 awards in the G2 Winter 2026 Reports for various categories including VoIP, UCaaS, Contact Center, and Customer Communications Management [1] Company Overview - Crexendo, Inc. is a software technology company that specializes in cloud communication platform software and unified communications as a service (UCaaS) offerings [1] - The company's services include voice, video, contact center, and managed IT services tailored to businesses of all sizes [1] Industry Recognition - G2.com is identified as the leading business software review platform that provides insights based on verified customer reviews [1]

Core Viewpoint - Crexendo (CXDO) shares have increased by 8.6% in the past four weeks, closing at $6.96, with a potential upside of 27.9% based on Wall Street analysts' mean price target of $8.9 [1][11]. Price Targets and Analyst Estimates - The mean estimate consists of five short-term price targets with a standard deviation of $0.74, indicating variability among analysts [2]. - The lowest price target of $8.00 suggests a 14.9% increase, while the highest target of $10.00 indicates a potential surge of 43.7% [2]. - A low standard deviation signifies strong agreement among analysts regarding the stock's price movement [9]. Earnings Estimates and Analyst Agreement - Analysts have shown increasing optimism about CXDO's earnings prospects, as evidenced by a positive trend in earnings estimate revisions [11]. - The Zacks Consensus Estimate for the current year has risen by 8.7% over the past month, with two estimates increasing and no negative revisions [12]. - CXDO holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimates [13]. Caution on Price Targets - While consensus price targets are popular among investors, they may not reliably indicate actual stock price movements [3][7]. - Analysts often set optimistic price targets due to business incentives, which can lead to inflated estimates [8]. - Investors should approach price targets with skepticism and not rely solely on them for investment decisions [10].

Core Insights - Crexendo, Inc. has been awarded the 2025 Product of the Year Award by Generative AI Expo for its AI-powered NetSapiens cloud communications platform, marking the second consecutive year the company has received this honor [1] Company Overview - Crexendo, Inc. is a software technology company specializing in cloud communication platform software and unified communications as a service (UCaaS) offerings, which include voice, video, contact center, and managed IT services [1] Industry Recognition - The award from TMC highlights the breakthrough innovation in generative AI and its transformative impact on cloud communications, underscoring the significance of AI in enhancing communication technologies [1]

Company Performance - Crexendo (CXDO) has seen a significant increase in its stock price, rising 24.1% over the past month and reaching a new 52-week high of $7.65 [1] - The stock has gained 43% since the beginning of the year, outperforming the Zacks Computer and Technology sector's 26.9% increase and the Zacks Internet - Services industry's 50.7% return [1] Earnings and Revenue - Crexendo has consistently beaten earnings estimates, achieving positive surprises in the last four quarters [2] - In the latest earnings report on November 4, 2025, Crexendo reported an EPS of $0.10, exceeding the consensus estimate of $0.08, and beat the revenue estimate by 2.71% [2] - For the current fiscal year, Crexendo is projected to earn $0.35 per share on revenues of $67.94 million, reflecting a 34.62% increase in EPS and an 11.74% increase in revenues [3] - For the next fiscal year, the expected earnings are $0.38 per share on revenues of $75.42 million, indicating a year-over-year change of 7.14% in EPS and 11.01% in revenues [3] Valuation Metrics - Crexendo has a Value Score of D, while its Growth and Momentum Scores are A and B, respectively, resulting in a VGM Score of B [6] - The stock trades at 21.4X current fiscal year EPS estimates, aligning with the peer industry average, but on a trailing cash flow basis, it trades at 24.9X compared to the peer group's average of 14X [6] Zacks Rank - Crexendo holds a Zacks Rank of 2 (Buy), supported by favorable earnings estimate revisions from analysts [7] - The recommendation is for investors to select stocks with a Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, indicating that Crexendo may have further upside potential [7] Industry Comparison - The Internet - Services industry is performing well, ranking in the top 35% of all industries, providing a favorable environment for both Crexendo and its peer Akamai Technologies, Inc. (AKAM) [10] - Akamai Technologies has a Zacks Rank of 2 (Buy) and has also shown strong earnings performance, beating consensus estimates by 13.41% [9]

Core Insights - An active investing strategy focuses on identifying breakout stocks that trade within specific price ranges, with investors selling when prices fall below the lower band and holding when they break above the upper band for potential gains [1] Breakout Stock Selection - To identify breakout stocks, it is essential to calculate support and resistance levels, where support is the lower bound and resistance is the upper bound of stock movements [2] - Demand for a stock is lowest at the support level, while traders are more inclined to buy at the resistance level, indicating potential breakout candidates [3] Validating Breakouts - A genuine breakout occurs when the previous resistance level becomes the new support level, which can be confirmed through long-term price trend analysis [5] - Correct identification of breakout stocks can lead to significant returns, even if initial prices seem unattractive [5] Screening Criteria - The screening criteria for breakout stocks include: - A percentage price change over four weeks between 10% and 20% [6] - Current Price / 52-Week High greater than or equal to 0.9 [6] - Zacks Rank less than or equal to 2 [6] - Beta for 60 months less than or equal to 2 [7] - Current price less than or equal to $20 [7] - These criteria narrow down the stock universe to 19 candidates, with South Atlantic Bancshares, Crexendo, and Hecla Mining being the top three [7] Company Profiles - **South Atlantic Bancshares**: Holding company for South Atlantic Bank, expected earnings growth rate of 55.7% for the current year, Zacks Rank 1 [8] - **Crexendo**: Provides cloud communication services, expected earnings growth rate of 26.9% for the current year, Zacks Rank 2 [9] - **Hecla Mining**: Engages in precious and base metals production, expected earnings growth rate of 245.5% for the current year, Zacks Rank 2 [10]

Core Insights - Crexendo (CXDO) reported $17.5 million in revenue for Q3 2025, marking an 11.9% year-over-year increase and a 2.71% surprise over the Zacks Consensus Estimate of $17.04 million [1] - The company achieved an EPS of $0.10, up from $0.06 a year ago, resulting in a 25% surprise over the consensus EPS estimate of $0.08 [1] Revenue Breakdown - Service revenue was $8.57 million, exceeding the estimated $8.47 million, reflecting a 7.8% increase year-over-year [4] - Product revenue was $1.41 million, slightly below the estimated $1.46 million, showing a significant decline of 22.4% compared to the previous year [4] - Software solutions revenue reached $7.52 million, surpassing the average estimate of $7.12 million, with a year-over-year growth of 28.3% [4] Stock Performance - Over the past month, Crexendo's shares have returned +9.2%, outperforming the Zacks S&P 500 composite's +2.1% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]

Core Insights - Crexendo (CXDO) reported quarterly earnings of $0.1 per share, exceeding the Zacks Consensus Estimate of $0.08 per share, and showing an increase from $0.06 per share a year ago, resulting in an earnings surprise of +25% [1] - The company achieved revenues of $17.5 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 2.71% and up from $15.63 million year-over-year [2] - Crexendo has consistently outperformed consensus EPS and revenue estimates over the last four quarters [2] Earnings Outlook - The future performance of Crexendo's stock will largely depend on management's commentary during the earnings call and the sustainability of the recent price movements [3][4] - The current consensus EPS estimate for the upcoming quarter is $0.08 on revenues of $17.83 million, and for the current fiscal year, it is $0.33 on revenues of $67.47 million [7] Industry Context - The Internet - Services industry, to which Crexendo belongs, is currently ranked in the top 37% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - The performance of Crexendo's stock may also be influenced by the overall industry outlook and trends in earnings estimate revisions [5][8]

Financial Data and Key Metrics Changes - Crexendo reported a 12% year-over-year revenue growth, reaching $17.5 million for Q3 2025 [14] - GAAP net income was $1.5 million, or $0.05 per share, compared to $100,000, or $0.01 per share, in Q3 2024 [15] - Non-GAAP net income increased to $3 million, or $0.10 per share, from $1.7 million, or $0.06 per share, in the same quarter last year [16] - EBITDA for the quarter was $2.1 million, up from $1 million in Q3 2024 [16] - Cash equivalents increased to $28.6 million from $18.2 million at the end of 2024 [16] Business Line Data and Key Metrics Changes - Software solutions revenue grew 28% year-over-year to $7.5 million [14] - Service revenue increased 8% to $8.6 million [14] - Product revenue decreased 25% to $1.4 million, but was slightly above the historical average [14] - Telecom services retail segment grew 2% organically, with telecom service revenue up 8% [20] Market Data and Key Metrics Changes - Remaining performance obligations increased to $87.9 million, up from $83.5 million at the end of June 2025 [15] - International revenue is growing rapidly, although it still represents less than 10% of total revenue [10] Company Strategy and Development Direction - The company is focused on organic growth and strategic M&A opportunities, with plans to close an acquisition by early next year [11] - Investments in AI-driven capabilities and Oracle Cloud Infrastructure are expected to enhance growth and operational efficiency [5][10] - The company aims to maintain its competitive advantage through superior customer service and innovative product offerings [9][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving double-digit growth through the next year [12] - The company is optimistic about the future, citing strong demand for its products and a talented workforce [11][26] - Management highlighted the importance of customer service as a differentiator in a commoditized market [20] Other Important Information - The company surpassed 7 million end users on its platform, marking a significant milestone [7] - The annual user group meeting in Miami was the most successful in history, with record attendance and excitement about innovations [6][8] Q&A Session Summary Question: Pipeline for new licensees and Q4 setup - Management indicated that growth in users can be estimated based on past performance, but specific numbers for new logos are still uncertain [31][32] Question: Measuring success of new AI products - Management plans to monitor adoption rates and will implement aggressive marketing strategies for existing and new customers [33][34] Question: Progress on migrating customers to OCI - Migration to OCI is expected to be completed by the end of Q1 2026 [36][37] Question: Drivers of service revenue growth - Positive market acceptance and execution by retail teams contributed to the 8% growth in service revenue [43][44] Question: Opportunities with AI receptionist technology - The AI receptionist is expected to appeal to a majority of small and mid-sized customers, potentially increasing average revenue per account significantly [49][50] Question: Insights on Version 46 of the platform - Version 46 is expected to be available for previews in Q1 2026, enhancing user interaction with the platform [54][56] Question: M&A strategy and potential acquisitions - The company prefers to acquire technology that integrates seamlessly with its existing platform but remains open to other opportunities if compelling [66][67] Question: Product gross margin decline - Management expects product gross margins to improve and return to historical averages in the upcoming quarters [78][79]