All You Need to Know About ZoomInfo (GTM) Rating Upgrade to Buy

Core Viewpoint - ZoomInfo has received an upgrade to a Zacks Rank 2 (Buy), indicating a positive outlook based on rising earnings estimates, which significantly influence stock prices [1][2]. Earnings Estimates and Stock Price Movement - The Zacks rating system highlights the strong correlation between changes in earnings estimates and near-term stock price movements, making it a valuable tool for investors [2][3]. - Institutional investors play a role in this relationship, as they adjust their valuations based on earnings estimates, leading to stock price fluctuations [3]. Company Performance Indicators - The upgrade for ZoomInfo suggests an improvement in its underlying business, which should encourage investors to drive the stock price higher [4]. - Analysts have raised their earnings estimates for ZoomInfo, with the Zacks Consensus Estimate increasing by 11.1% over the past three months [7]. Zacks Rank System - The Zacks Rank system categorizes stocks into five groups based on earnings estimates, with a proven track record of performance, particularly for Zacks Rank 1 stocks, which have averaged a +25% annual return since 1988 [6]. - ZoomInfo's upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, indicating strong potential for market-beating returns in the near term [9].