Here are three stocks with buy ranks and strong growth characteristics for investors to consider today, November 19:Pitney Bowes Inc. (PBI) : This shipping and mailing company carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 8.6% over the last 60 days.Pitney Bowes has a PEG ratio of 1.27 compared with 3.43 for the industry. The company possesses a Growth Score of B.The Greenbrier Companies, Inc. (GBX) : This railroad freight car equipment compa ...

Core Viewpoint - Five9 (FIVN) has been upgraded to a Zacks Rank 1 (Strong Buy) due to an upward trend in earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system emphasizes the importance of changing earnings estimates in determining stock price movements, with a strong correlation established between earnings estimate revisions and near-term stock performance [4][6]. - Rising earnings estimates for Five9 indicate an improvement in the company's underlying business, suggesting that investors may respond positively by driving the stock price higher [5]. Zacks Rating System - The Zacks Rank stock-rating system categorizes stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [7]. - Only the top 5% of Zacks-covered stocks receive a 'Strong Buy' rating, indicating superior earnings estimate revisions and potential for market-beating returns [9][10]. Earnings Estimate Revisions for Five9 - Five9 is projected to earn $2.28 per share for the fiscal year ending December 2024, reflecting a year-over-year increase of 11.2% [8]. - Over the past three months, the Zacks Consensus Estimate for Five9 has surged by 205.9%, highlighting a significant upward revision trend [8].

Core Insights - SESTEK has officially partnered with Five9 to enhance customer-agent interactions through AI-powered solutions [1][2][3] - The collaboration aims to integrate SESTEK's advanced conversational technology into the Five9 Intelligent Cloud Contact Center, promoting personalized and efficient customer engagement [2][4] - SESTEK's solutions include Knovvu Conversational Analytics, Knovvu AQM, Knovvu Voice Biometrics, and Knovvu Real-Time Guidance, leveraging a speech recognition engine with over 97% accuracy in English [3] Company Overview - Five9 provides a comprehensive suite of solutions for customer engagement, performance insights, and business outcomes, serving over 2,500 organizations globally [5] - SESTEK specializes in AI-powered automation solutions for customer service, having assisted over 550 enterprise clients across 20 countries since its inception in 2000 [6]

Financial Data and Key Metrics Changes - Subscription revenue growth accelerated to 20% year-over-year, while total revenue growth accelerated to 15%, reaching a record of $264.2 million in Q3 [6][25] - Adjusted EBITDA margin was 19.8%, up 3.2 percentage points sequentially and 1.9 percentage points year-over-year [29] - Operating cash flow was a record $41 million, equivalent to 16% of revenue [6][31] - Non-GAAP EPS was $0.67 per diluted share, up $0.15 from Q3 2023 [31] Business Line Data and Key Metrics Changes - AI revenue grew 40% year-over-year, with Agent Assist experiencing 158% year-over-year growth [27] - The average ARR of new logo deals that included AI was over 5x larger than deals without AI [8] - AI bookings grew over 50% year-over-year in Q3 [8] Market Data and Key Metrics Changes - Telecom usage revenue made up 13% of Q3 revenue, declining year-over-year in the low single digits [28] - Professional services accounted for 7% of revenue, expected to remain stable or decline over the long term [28] Company Strategy and Development Direction - The acquisition of Acqueon is seen as a significant milestone to enhance the intelligent CX platform [14] - The company aims to drive long-term durable subscription revenue growth in the 20% to 30% range [17][36] - The focus on AI products is central to the company's strategy, with a strong emphasis on transforming customer experience [7][13] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the long-term potential for subscription revenue growth despite current macroeconomic challenges [42][44] - The company is navigating a learning curve regarding AI adoption among customers, but remains confident in the long-term benefits [47][48] Other Important Information - The company opened a new data center in India, which is expected to unlock significant opportunities in the contact center market [67] - Five9 was named a leader in the Gartner Magic Quadrant for CCaaS [16] Q&A Session Summary Question: Insights on AI adoption from early adopters - Management noted that AI is central to customer experience, with many companies integrating AI to enhance both automation and human agent support [38][39] Question: Long-term subscription revenue growth expectations - Management remains excited about the potential for subscription revenue growth in the 20% to 30% range, emphasizing the importance of this metric [42][43] Question: Changes in consumer retail exposure and expectations for Q4 - Management observed a slightly better environment in Q3 across most verticals, with cautious expectations for Q4 due to economic indicators [51][52] Question: Competitive pricing pressure and deal closures - Management indicated no significant changes in competitive pricing pressure and noted that some medium-sized deals pushed into Q4 were successfully closed early in October [79][82]

Company Performance - Five9 reported quarterly earnings of $0.67 per share, exceeding the Zacks Consensus Estimate of $0.58 per share, and up from $0.52 per share a year ago, representing an earnings surprise of 15.52% [1] - The company posted revenues of $264.18 million for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 3.68%, compared to year-ago revenues of $230.11 million [2] - Over the last four quarters, Five9 has consistently surpassed consensus EPS and revenue estimates [2] Stock Outlook - Five9 shares have declined approximately 60% since the beginning of the year, contrasting with the S&P 500's gain of 24.3% [3] - The current consensus EPS estimate for the upcoming quarter is $0.68 on revenues of $260.7 million, and for the current fiscal year, it is $2.27 on revenues of $1.01 billion [7] - The estimate revisions trend for Five9 is mixed, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Industry Context - The Internet - Software industry, to which Five9 belongs, is currently ranked in the top 25% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Company Overview - Five9 (NASDAQ: FIVN) is a software company that specializes in providing cloud solutions for contract and call centers [1] - The company has over 3,000 clients globally and employs 2,684 individuals [1] - Five9 operates under a SaaS (Software as a Service) business model [1] Investment Philosophy - The investment philosophy is based on fundamental bottom-up analysis and quantitative modeling [1] - The focus is on identifying perception gaps to take advantage of over-pessimism and excessive exuberance in the market [1] - The analysis aims to uncover unique trading opportunities influenced by the macroeconomic landscape and in-depth fundamental research on companies showing signs of dislocation or potential perception gaps [1]

Group 1 - The Bear Cave has released a bearish report on Five9, claiming that management has misled investors regarding the impact of AI on the company's business [1][2] - Five9 has not posted an annual profit since its IPO in 2014, and despite strong revenue growth, it recently lowered its revenue guidance, raising concerns among investors [3] - CEO Mike Burkland stated that AI is beneficial for Five9, expecting only 5% to 15% automation due to AI, while the company has also announced a workforce reduction of about 7% [4][5] Group 2 - The Bear Cave argues that Five9 is a "major AI loser" and is facing pressure as large companies cut spending on call centers [2][4] - The recent layoffs may indicate that management lacks confidence in its optimistic outlook regarding AI [5]

da-kuk My investment rating for Five9, Inc. (NASDAQ:FIVN) shares have been downgraded to a Hold now. FIVN's full-year revenue guidance reduction translates into an uninspiring low-teens percentage (versus historical average in the high-twenties range) top-line growth outlook. As such, my previous Buy rating for the stock is no longer warranted. However, Five9's upward EPS guidance revision for FY 2024 and its long-term AI tailwinds mean that a bearish view (or Sell rating) on the company is unjustified. Mor ...

Five9, Inc. FIVN shares are trading lower today. Several analysts lowered the price target on the stock following an annual guidance cut due to recent booking trends and economic uncertainty. Yesterday, the company reported revenue of $252.1 million, beating the consensus of $245.2 million, and adjusted EPS of $0.52, which surpassed the consensus of $0.44. For 2024, Five9 reduced revenue guidance to $1.013 billion – $1.017 billion ($1.053 billion – $1.057 billion) vs. $1.055 billion and raised adjusted EPS ...

Five9 (FIVN) came out with quarterly earnings of $0.52 per share, beating the Zacks Consensus Estimate of $0.43 per share. This compares to earnings of $0.52 per share a year ago. These figures are adjusted for nonrecurring items. This quarterly report represents an earnings surprise of 20.93%. A quarter ago, it was expected that this provider of cloud-based software to call centers would post earnings of $0.38 per share when it actually produced earnings of $0.48, delivering a surprise of 26.32%. Over the ...