Core Viewpoint - Crexendo (CXDO) has received an upgrade to a Zacks Rank 2 (Buy) due to an upward trend in earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system is primarily driven by changes in a company's earnings outlook, which is reflected in earnings estimate revisions [2][4]. - An increase in earnings estimates is strongly correlated with near-term stock price movements, as institutional investors adjust their valuations based on these estimates [4][6]. Crexendo's Earnings Outlook - For the fiscal year ending December 2024, Crexendo is expected to earn $0.24 per share, which remains unchanged from the previous year [8]. - Over the past three months, the Zacks Consensus Estimate for Crexendo has increased by 3.7%, indicating a positive trend in earnings expectations [8]. Zacks Rank System - The Zacks Rank system classifies 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 Crexendo to a Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [10].
Crexendo (CXDO) Upgraded to Buy: What Does It Mean for the Stock?