Confluent (CFLT) appears an attractive pick given a noticeable improvement in the company's earnings outlook. The stock has been a strong performer lately, and the momentum might continue with analysts still raising their earnings estimates for the company.The upward trend in estimate revisions for this data infrastructure software maker reflects growing optimism of analysts on its earnings prospects, which should get reflected in its stock price. After all, empirical research shows a strong correlation bet ...

Company Performance - Confluent reported quarterly earnings of $0.08 per share, exceeding the Zacks Consensus Estimate of $0.07 per share, and up from $0.05 per share a year ago, representing an earnings surprise of 14.29% [1] - The company achieved revenues of $271.12 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 2.86%, and an increase from $217.24 million year-over-year [2] - Over the last four quarters, Confluent has consistently surpassed consensus EPS and revenue estimates [2] Stock Outlook - Confluent shares have declined approximately 14% since the beginning of the year, compared to a 5.5% decline in the S&P 500 [3] - The company's current Zacks Rank is 3 (Hold), indicating expected performance in line with the market in the near future [6] - The consensus EPS estimate for the upcoming quarter is $0.08 on revenues of $277.28 million, and for the current fiscal year, it is $0.35 on revenues of $1.16 billion [7] Industry Context - The Internet - Software industry, to which Confluent belongs, is currently ranked in the bottom 44% of over 250 Zacks industries, suggesting potential challenges for stock performance [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact investor sentiment [5]