Investors might want to bet on Bandwidth (BAND - Free Report) , as earnings estimates for this company have been showing solid improvement lately. The stock has already gained solid short-term price momentum, and this trend might continue with its still improving earnings outlook.
Analysts' growing optimism on the earnings prospects of this enterprise software developer is driving estimates higher, which should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. This insight is at the core of our stock rating tool -- the Zacks Rank.
The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Strong Buy) to a Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record of outperformance, with Zacks #1 Ranked stocks generating an average annual return of +25% since 2008.
For Bandwidth, there has been strong agreement among the covering analysts in raising earnings estimates, which has helped push consensus estimates considerably higher for the next quarter and full year.
Current-Quarter Estimate Revisions
The company is expected to earn $0.04 per share for the current quarter, which represents a year-over-year change of -55.56%.
Over the last 30 days, four estimates have moved higher for Bandwidth while one has gone lower. As a result, the Zacks Consensus Estimate has increased 5.17%.
Current-Year Estimate Revisions
For the full year, the earnings estimate of $0.32 per share represents a change of -67.01% from the year-ago number.
There has been an encouraging trend in estimate revisions for the current year as well. Over the past month, four estimates have moved up for Bandwidth versus one negative revision. This has pushed the consensus estimate 36.72% higher.
Favorable Zacks Rank
The promising estimate revisions have helped Bandwidth earn a Zacks Rank #2 (Buy). The Zacks Rank is a tried-and-tested rating tool that helps investors effectively harness the power of earnings estimate revisions and make the right investment decision. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Our research shows that stocks with Zacks Rank #1 (Strong Buy) and 2 (Buy) significantly outperform the S&P 500.
Bottom Line
While strong estimate revisions for Bandwidth have attracted decent investments and pushed the stock 71.7% higher over the past four weeks, further upside may still be left in the stock. So, you may consider adding it to your portfolio right away.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>
Investors might want to bet on Bandwidth (BAND - Free Report) , as earnings estimates for this company have been showing solid improvement lately. The stock has already gained solid short-term price momentum, and this trend might continue with its still improving earnings outlook.
Analysts' growing optimism on the earnings prospects of this enterprise software developer is driving estimates higher, which should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. This insight is at the core of our stock rating tool -- the Zacks Rank.
The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Strong Buy) to a Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record of outperformance, with Zacks #1 Ranked stocks generating an average annual return of +25% since 2008.
For Bandwidth, there has been strong agreement among the covering analysts in raising earnings estimates, which has helped push consensus estimates considerably higher for the next quarter and full year.
Current-Quarter Estimate Revisions
The company is expected to earn $0.04 per share for the current quarter, which represents a year-over-year change of -55.56%.
Over the last 30 days, four estimates have moved higher for Bandwidth while one has gone lower. As a result, the Zacks Consensus Estimate has increased 5.17%.
Current-Year Estimate Revisions
For the full year, the earnings estimate of $0.32 per share represents a change of -67.01% from the year-ago number.
There has been an encouraging trend in estimate revisions for the current year as well. Over the past month, four estimates have moved up for Bandwidth versus one negative revision. This has pushed the consensus estimate 36.72% higher.
Favorable Zacks Rank
The promising estimate revisions have helped Bandwidth earn a Zacks Rank #2 (Buy). The Zacks Rank is a tried-and-tested rating tool that helps investors effectively harness the power of earnings estimate revisions and make the right investment decision. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Our research shows that stocks with Zacks Rank #1 (Strong Buy) and 2 (Buy) significantly outperform the S&P 500.
Bottom Line
While strong estimate revisions for Bandwidth have attracted decent investments and pushed the stock 71.7% higher over the past four weeks, further upside may still be left in the stock. So, you may consider adding it to your portfolio right away.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>
Get the latest research report on BAND - FREE