ZoomInfo (GTM) Upgraded to Buy: Here's What You Should Know

Core Viewpoint - ZoomInfo has received an upgrade 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 Price Impact - The Zacks rating system reflects changes in earnings estimates, which are strongly correlated with near-term stock price movements [4][6]. - Institutional investors often rely on earnings estimates to determine the fair value of stocks, leading to buying or selling actions that affect stock prices [4]. Company Performance Indicators - The Zacks Consensus Estimate for ZoomInfo has increased by 1% over the past three months, with expected earnings of $1.01 per share for the fiscal year ending December 2025, showing no year-over-year change [8]. - The upgrade to Zacks Rank 2 places ZoomInfo in the top 20% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [10]. Zacks Rating System Overview - The Zacks Rank system categorizes stocks into five groups based on earnings estimates, with a strong historical performance of Zacks Rank 1 stocks generating an average annual return of +25% since 1988 [7]. - The system maintains a balanced distribution of "buy" and "sell" ratings, ensuring that only the top 20% of stocks receive favorable ratings based on earnings estimate revisions [9][10].