分组1 - Extreme Networks reported quarterly earnings of $0.26 per share, exceeding the Zacks Consensus Estimate of $0.24 per share, and showing an increase from $0.21 per share a year ago, resulting in an earnings surprise of +6.86% [1] - The company achieved revenues of $317.93 million for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 2.08%, and up from $279.36 million in the same quarter last year [2] - Over the last four quarters, Extreme Networks has surpassed consensus EPS estimates three times and topped consensus revenue estimates four times [2] 分组2 - The stock has underperformed, losing about 11.7% since the beginning of the year, while the S&P 500 has gained 1.9% [3] - The current consensus EPS estimate for the upcoming quarter is $0.25 on revenues of $308.2 million, and for the current fiscal year, it is $1.00 on revenues of $1.25 billion [7] - The Zacks Industry Rank for Computer - Networking is currently in the bottom 18% of over 250 Zacks industries, indicating potential challenges for stock performance [8]

Core Viewpoint - Lantronix, Inc. (LTRX) has experienced a significant increase in share price, attributed to momentum in its drone business and strengthening fundamentals [1][2]. Group 1: Share Price Movement - LTRX shares ended the last trading session 6.5% higher at $6.23, with a notable trading volume [1]. - This increase contrasts with a modest 0.3% gain over the past four weeks [1]. Group 2: Business Growth and Developments - The growth in LTRX's unmanned aerial systems segment is accelerating due to rising demand from various customers [3]. - The launch of the Edge AI drone solution, compliant with NDAA and TAA, positions the company to capitalize on growing defense and commercial demand [3]. - LTRX's new Drone Reference Platform aims to serve as a foundational compute partner for next-generation Unmanned Aerial Vehicle programs across multiple markets [4]. Group 3: Earnings Expectations - Management indicated that momentum in the drone segment could exceed initial expectations for fiscal 2026 [5]. - The company is projected to report quarterly earnings of $0.03 per share, reflecting a year-over-year decline of 25%, with revenues expected at $30.2 million, down 3.1% from the previous year [5]. Group 4: Market Position and Comparisons - The consensus EPS estimate for LTRX has remained unchanged over the last 30 days, indicating a potential lack of upward momentum in stock price without earnings estimate revisions [7]. - LTRX holds a Zacks Rank of 3 (Hold), similar to Extreme Networks (EXTR), which has seen a 1.8% decline in its last trading session [7][8].

Company Performance - Intrusion Inc. closed at $1.21, down 3.97% from the previous trading session, underperforming the S&P 500 which gained 0.62% [1] - The stock has decreased by 16% over the past month, compared to a loss of 1.47% in the Computer and Technology sector and a gain of 0.59% in the S&P 500 [1] Upcoming Earnings - Analysts expect Intrusion Inc. to report earnings of -$0.09 per share, reflecting a year-over-year growth of 75% [2] - Revenue is projected to be $2.06 million, indicating a 22.32% increase compared to the same quarter last year [2] Full Year Estimates - For the full year, earnings are projected at -$0.41 per share, showing a change of +74.85% from the previous year, while revenue is expected to remain at $7.67 million [3] - Recent revisions to analyst forecasts are important as they reflect short-term business trends and can indicate analyst optimism about the company's profitability [3] Zacks Rank and Industry Performance - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), currently rates Intrusion Inc. at 4 (Sell) [5] - The Computer - Networking industry, part of the Computer and Technology sector, has a Zacks Industry Rank of 43, placing it in the top 18% of over 250 industries [6]

Core Insights - Cisco Systems' Security revenues decreased by 2% year over year to $1.98 billion in Q1 FY26, impacted by a shift to cloud subscriptions and lower revenues from older products [1][10] - New and refreshed products, which make up about one-third of Cisco's security portfolio, are expected to drive top-line growth, with mid-teens growth in demand for next-gen firewalls [2] - Splunk's annualized recurring revenues and product remaining performance obligations grew in double digits, enhancing Cisco's threat detection capabilities through integration with Cisco Extended Detection and Response (XDR) [3][10] Financial Performance - The Zacks Consensus Estimate for Q2 FY26 service revenues is $2.16 billion, indicating a 2.6% growth compared to the same quarter last year [4] - The Zacks Consensus Estimate for Q2 FY26 earnings is $1.02 per share, suggesting an 8.5% growth from the previous year [15] - The Zacks Consensus Estimate for FY26 earnings is $4.10 per share, indicating a 7.6% growth from FY25 [16] Competitive Landscape - Cisco faces significant competition in the security domain from Fortinet and Okta [5] - Fortinet is rapidly advancing its AI-powered security operations, with over 20 AI-driven solutions and a focus on secure AI usage [6] - Okta's offerings include AI-powered capabilities that are expected to drive a CAGR of 16% in revenues from FY23 to FY26, with projected revenues of $2.906 billion to $2.908 billion for FY26 [7] Stock Performance and Valuation - Cisco shares have appreciated by 30.8% over the past year, outperforming the broader Zacks Computer and Technology sector's return of 24.2% [8] - Cisco's stock is trading at a premium, with a trailing 12-month price/book ratio of 6.49X compared to the industry average of 6.13X [12] - Cisco currently holds a Zacks Rank 3 (Hold) [16]

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell higher, with the expectation that established trends will continue [1] Company Overview: NetScout Systems (NTCT) - NetScout Systems currently holds a Momentum Style Score of B, indicating a favorable momentum characteristic [2] - The company has a Zacks Rank of 2 (Buy), which is associated with a strong track record of outperformance [3] Price Performance - NTCT shares have increased by 2.26% over the past week, while the Zacks Computer - Networking industry has decreased by 1.18% during the same period [5] - Over the last month, NTCT's price change is 5.57%, outperforming the industry's 2.45% [5] - In the last quarter, NTCT shares rose by 8.19%, and over the past year, they have increased by 29.34%, compared to the S&P 500's gains of 3.01% and 17.28%, respectively [6] Trading Volume - NTCT's average 20-day trading volume is 565,518 shares, which serves as a bullish indicator when combined with rising stock prices [7] Earnings Outlook - In the past two months, two earnings estimates for NTCT have been revised upwards, while none have been revised downwards, leading to an increase in the consensus estimate from $2.35 to $2.41 [9] - For the next fiscal year, two estimates have also moved upwards with no downward revisions [9] Conclusion - Given the positive momentum indicators and earnings outlook, NTCT is positioned as a 2 (Buy) stock with a Momentum Score of B, making it a potential candidate for near-term investment [11]

Core Viewpoint - Digi International (DGII) has shown strong year-to-date performance, outperforming the broader Computer and Technology sector, which indicates potential investment opportunities in the company [1][4]. Company Performance - Digi International has gained approximately 47.9% year-to-date, significantly higher than the average return of 26.5% for the Computer and Technology sector [4]. - The Zacks Consensus Estimate for DGII's full-year earnings has increased by 9.6% over the past 90 days, reflecting improved analyst sentiment and a stronger earnings outlook [4]. Industry Context - Digi International is part of the Computer - Networking industry, which includes 8 stocks and currently ranks 44 in the Zacks Industry Rank. This industry has seen an average gain of 31.4% year-to-date, indicating that DGII is performing better than its immediate industry peers [6]. - In comparison, IBM, another notable stock in the Computer and Technology sector, has returned 37.7% year-to-date and belongs to the Computer - Integrated Systems industry, which ranks 20 and has gained 85.8% this year [5][6].

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell higher, with the expectation that established trends will continue [1] Company Overview: Digi International (DGII) - Digi International currently holds a Momentum Style Score of B, indicating a favorable momentum characteristic [2] - The company has a Zacks Rank of 2 (Buy), suggesting strong potential for outperformance in the market [3] Performance Metrics - Over the past week, DGII shares have increased by 7.79%, while the Zacks Computer - Networking industry remained flat [5] - In a longer timeframe, DGII's monthly price change is 30.66%, significantly outperforming the industry's 2.13% [5] - Over the last quarter, DGII shares rose by 29.48%, and over the past year, they increased by 38.72%, compared to the S&P 500's gains of 5.71% and 15.31%, respectively [6] Trading Volume - The average 20-day trading volume for DGII is 294,800 shares, which serves as a bullish indicator when combined with rising stock prices [7] Earnings Outlook - In the past two months, three earnings estimates for DGII have been revised upwards, while none have been lowered, leading to an increase in the consensus estimate from $2.20 to $2.38 [9] - For the next fiscal year, one estimate has moved upwards with no downward revisions [9] Conclusion - Given the positive performance metrics and earnings outlook, DGII is positioned as a 2 (Buy) stock with a Momentum Score of B, making it a strong candidate for near-term investment [11]

Industry Overview - The Zacks Computer - Networking industry is poised for growth driven by advancements in cloud computing, network security, big data, and next-gen connectivity, particularly with the rapid adoption of AI technology [1][2] - The proliferation of AI workloads and hyperscale data centers is leading to increased investments in high-speed interconnects, optical networking, and Ethernet switches [1] - The deployment of 5G technology is enhancing the Internet of Things (IoT), Advanced Driver Assistance Systems, AR/VR devices, and 5G smartphones, thereby increasing demand for robust networking infrastructure [1] Trends Influencing the Industry - The explosion of AI workloads necessitates significant upgrades in observability infrastructure, increasing the demand for innovative networking products [2] - The rapid deployment of 5G technology is expected to boost growth prospects, with substantial investments required to upgrade core fiber backhaul networks [5] - The upcoming Wi-Fi 7 upgrade cycle is anticipated to drive momentum in the industry, addressing Wi-Fi spectrum shortages and supporting a higher number of connected devices [6] Company Performance - NetScout Systems reported a 15% year-over-year revenue increase to $219 million in Q2 of fiscal 2026, driven by demand across enterprise and service provider markets [20] - Digi International achieved a 9% year-over-year revenue growth of $114 million in fiscal 2025, with a 31% surge in Annual Recurring Revenue (ARR) to $152 million [28] - Lantronix reported a 3% year-over-year revenue increase to $29.8 million in Q1 of fiscal 2026, with significant growth in its unmanned aerial systems segment [34] Stock Market Performance - The Zacks Computer - Networking industry has outperformed the S&P 500 Composite and the broader Zacks Computer and Technology sector, gaining 33.4% over the past year compared to the sector's 23.9% and the S&P 500's 12.9% [11] - The industry is currently trading at a forward 12-month price-to-earnings (P/E) ratio of 22.45X, slightly below the S&P 500's 22.78X and the sector's 27.8X [14] Future Outlook - The Zacks Industry Rank for the Computer - Networking industry is 38, placing it in the top 16% of over 243 Zacks industries, indicating bright near-term prospects [9] - Companies in the industry are focusing on innovation in networking technologies, including network virtualization and Software-Defined Networking, to meet the growing demand for secure infrastructure [4]

Company Performance - Lyft has returned 67.3% year-to-date, significantly outperforming the average gain of 23% in the Computer and Technology sector [4] - The Zacks Consensus Estimate for Lyft's full-year earnings has increased by 19.8% over the past quarter, indicating improving analyst sentiment [3] Industry Comparison - Lyft belongs to the Internet - Services industry, which includes 35 companies and has gained approximately 47.5% year-to-date, showing that Lyft is performing better than its industry group [5] - Digi International, another stock in the Computer and Technology sector, has also outperformed with a year-to-date increase of 24.9% [4] Sector Ranking - The Computer and Technology sector ranks 2 in the Zacks Sector Rank, which evaluates the average Zacks Rank of individual stocks within the sector [2] - Lyft currently holds a Zacks Rank of 2 (Buy), indicating a favorable outlook compared to other stocks in the sector [3]

Core Insights - Digi International reported quarterly earnings of $0.56 per share, exceeding the Zacks Consensus Estimate of $0.51 per share, and showing an increase from $0.52 per share a year ago, resulting in an earnings surprise of +9.80% [1] - The company achieved revenues of $114.34 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 3.24% and increasing from $105.05 million year-over-year [2] - Digi International's stock has increased approximately 18.1% since the beginning of the year, outperforming the S&P 500's gain of 16.4% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.52 on revenues of $112.95 million, while for the current fiscal year, the estimate is $2.20 on revenues of $462.25 million [7] - The estimate revisions trend for Digi International was mixed prior to the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Industry Context - The Computer - Networking industry, to which Digi International belongs, is currently ranked in the bottom 35% of over 250 Zacks industries, suggesting potential challenges ahead [8]