Backblaze (BLZE) Upgraded to Buy: Here's Why

Core Viewpoint - Backblaze, Inc. (BLZE) 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 Impact - The Zacks rating system is based on changes in earnings estimates, which have a strong correlation with near-term stock price movements [4][6]. - An increase in earnings estimates typically leads to institutional investors adjusting their valuations, resulting in stock price movements [4]. Company Performance Indicators - For the fiscal year ending December 2025, Backblaze is expected to earn -$0.13 per share, reflecting a 67.5% change from the previous year's reported number [8]. - Over the past three months, the Zacks Consensus Estimate for Backblaze has increased by 9%, indicating a positive trend in earnings outlook [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]. - Backblaze's upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [10].