Investors might want to bet on Q2 Holdings (QTWO) , as it has been recently upgraded to a Zacks Rank #2 (Buy). This upgrade is essentially a reflection of an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices. Fundamentally speaking, rising earnings estimates and the consequent rating upgrade for Q2 Holdings imply an improvement in the company's underlying business. Investors should show their appreciation for this improving business trend by pushing the stock highe ...

Company Performance - Q2 Holdings reported quarterly earnings of $0.54 per share, exceeding the Zacks Consensus Estimate of $0.48 per share, and up from $0.31 per share a year ago, representing an earnings surprise of 12.50% [1] - The company posted revenues of $189.74 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 1.73%, compared to year-ago revenues of $165.51 million [2] - Over the last four quarters, Q2 Holdings has surpassed consensus revenue estimates four times, but has only beaten consensus EPS estimates once [2] Stock Outlook - Q2 Holdings shares have declined approximately 21.2% since the beginning of the year, while the S&P 500 has decreased by 4.7% [3] - The current consensus EPS estimate for the upcoming quarter is $0.50 on revenues of $191.56 million, and for the current fiscal year, it is $2.13 on revenues of $774.84 million [7] Industry Context - The Internet - Software industry, to which Q2 Holdings belongs, is currently ranked in the top 37% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact Q2 Holdings' stock performance [5]