What Makes Freshworks (FRSH) a New Strong Buy Stock

Core Viewpoint - Freshworks Inc. (FRSH) has been upgraded to a Zacks Rank 1 (Strong Buy), indicating a positive earnings outlook that could lead to increased stock prices [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system is based on changes in earnings estimates, which are strongly correlated with near-term stock price movements [4][6]. - An increase in earnings estimates typically results in institutional investors adjusting their valuations, leading to buying or selling activity that affects stock prices [4]. Recent Performance and Projections - Freshworks is expected to earn $0.57 per share for the fiscal year ending December 2025, with no year-over-year change [8]. - Over the past three months, the Zacks Consensus Estimate for Freshworks has increased by 23.3%, reflecting a positive trend in earnings estimates [8]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [7]. - Only the top 5% of Zacks-covered stocks receive a "Strong Buy" rating, indicating superior earnings estimate revisions [10].