Core Viewpoint - Sangoma Technologies Corporation (SANG) has received a Zacks Rank 2 (Buy) upgrade, indicating a positive outlook based on rising earnings estimates, which significantly influence stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system emphasizes the importance of earnings estimate revisions, which are strongly correlated with near-term stock price movements [4][6]. - 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]. Recent Performance and Projections - For the fiscal year ending June 2025, Sangoma is projected to earn -$0.17 per share, reflecting a 34.6% change from the previous year's reported figure [8]. - Over the past three months, the Zacks Consensus Estimate for Sangoma has increased by 8.3%, indicating a positive trend in earnings outlook [8]. Zacks Rank System Overview - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with only the top 20% receiving a 'Strong Buy' or 'Buy' rating, suggesting superior potential for market-beating returns [9][10]. - Stocks rated Zacks Rank 1 have historically generated an average annual return of +25% since 1988, showcasing the effectiveness of the rating system [7].
Sangoma Technologies Corporation (SANG) Upgraded to Buy: Here's What You Should Know