Extreme Networks (EXTR) Upgraded to Buy: Here's Why

Core Viewpoint - Extreme Networks (EXTR) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Performance - The Zacks rating system emphasizes the correlation between changes in earnings estimates and stock price movements, particularly influenced by institutional investors [4]. - For Extreme Networks, the increase in earnings estimates suggests an improvement in the company's business fundamentals, likely leading to higher stock prices [5]. Earnings Estimate Revisions - Extreme Networks is projected to earn $0.81 per share for the fiscal year ending June 2025, reflecting a year-over-year increase of 153.1% [8]. - Over the past three months, the Zacks Consensus Estimate for Extreme Networks has risen by 4.9%, indicating a positive trend in earnings expectations [8]. Zacks Rank System - The Zacks Rank system categorizes stocks based on earnings estimate revisions, with only the top 20% of stocks receiving a 'Strong Buy' or 'Buy' rating, highlighting their potential for market-beating returns [9][10]. - The upgrade of Extreme Networks to a Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting a favorable outlook for near-term stock performance [10].