Workflow
What Makes Crexendo (CXDO) a New Buy Stock
CrexendoCrexendo(US:CXDO) ZACKSยท2024-08-13 17:00

Core Viewpoint - Crexendo (CXDO) has received an upgrade to a Zacks Rank 2 (Buy), indicating a positive trend in earnings estimates which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system is based on changes in a company's earnings picture, which is crucial for predicting near-term stock price movements [2][4]. - An increase in earnings estimates typically leads to higher fair value calculations by institutional investors, resulting in buying or selling actions that affect stock prices [4]. Crexendo's Earnings Outlook - The upgrade for Crexendo reflects an improvement in its underlying business, which is expected to drive the stock price higher as investors respond positively to this trend [5][10]. - For the fiscal year ending December 2024, Crexendo is projected to earn $0.24 per share, with a recent 8% increase in the Zacks Consensus Estimate over the past three months [8]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a strong historical performance, particularly for Zacks Rank 1 stocks which have averaged a +25% annual return since 1988 [7]. - The upgrade to Zacks Rank 2 places Crexendo in the top 20% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [10].