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Crexendo Inc. (CXDO) Hit a 52 Week High, Can the Run Continue?
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Shares of Crexendo (CXDO - Free Report) have been strong performers lately, with the stock up 48.7% over the past month. The stock hit a new 52-week high of $9.89 in the previous session. Crexendo has gained 48.7% since the start of the year compared to the 18.7% gain for the Zacks Computer and Technology sector and the 24.1% return for the Zacks Internet - Services industry.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on May 5, 2026, Crexendo reported EPS of $0.1 versus consensus estimate of $0.08 while it beat the consensus revenue estimate by 5.26%.
For the current fiscal year, Crexendo is expected to post earnings of $0.44 per share on $99.72 in revenues. This represents a 25% change in EPS on a 46.29% change in revenues. For the next fiscal year, the company is expected to earn $0.58 per share on $115.35 in revenues. This represents a year-over-year change of 31.11% and 15.67%, respectively.
Valuation Metrics
While Crexendo has moved to its 52-week high in the recent past, investors need to be asking, what is next for the company? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Crexendo has a Value Score of C. The stock's Growth and Momentum Scores are A and A, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 21.6X current fiscal year EPS estimates, which is a premium to the peer industry average of 16.9X. On a trailing cash flow basis, the stock currently trades at 25.7X versus its peer group's average of 12.9X. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, Crexendo currently has a Zacks Rank of #2 (Buy) thanks to a solid earnings estimate revision trend.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Crexendo fits the bill. Thus, it seems as though Crexendo shares could have a bit more room to run in the near term.
How Does CXDO Stack Up to the Competition?
Shares of CXDO have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is HealthStream, Inc. (HSTM - Free Report) . HSTM has a Zacks Rank of #2 (Buy) and a Value Score of B, a Growth Score of B, and a Momentum Score of C.
Earnings were strong last quarter. HealthStream, Inc. beat our consensus estimate by 25.00%, and for the current fiscal year, HSTM is expected to post earnings of $0.74 per share on revenue of $326.86 million.
Shares of HealthStream, Inc. have gained 6.7% over the past month, and currently trade at a forward P/E of 31.01X and a P/CF of 8.75X.
The Internet - Services industry may rank in the bottom 60% of all the industries we have in our universe, but there still looks like there are some nice tailwinds for CXDO and HSTM, even beyond their own solid fundamental situation.
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Crexendo Inc. (CXDO) Hit a 52 Week High, Can the Run Continue?
Shares of Crexendo (CXDO - Free Report) have been strong performers lately, with the stock up 48.7% over the past month. The stock hit a new 52-week high of $9.89 in the previous session. Crexendo has gained 48.7% since the start of the year compared to the 18.7% gain for the Zacks Computer and Technology sector and the 24.1% return for the Zacks Internet - Services industry.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on May 5, 2026, Crexendo reported EPS of $0.1 versus consensus estimate of $0.08 while it beat the consensus revenue estimate by 5.26%.
For the current fiscal year, Crexendo is expected to post earnings of $0.44 per share on $99.72 in revenues. This represents a 25% change in EPS on a 46.29% change in revenues. For the next fiscal year, the company is expected to earn $0.58 per share on $115.35 in revenues. This represents a year-over-year change of 31.11% and 15.67%, respectively.
Valuation Metrics
While Crexendo has moved to its 52-week high in the recent past, investors need to be asking, what is next for the company? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Crexendo has a Value Score of C. The stock's Growth and Momentum Scores are A and A, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 21.6X current fiscal year EPS estimates, which is a premium to the peer industry average of 16.9X. On a trailing cash flow basis, the stock currently trades at 25.7X versus its peer group's average of 12.9X. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, Crexendo currently has a Zacks Rank of #2 (Buy) thanks to a solid earnings estimate revision trend.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Crexendo fits the bill. Thus, it seems as though Crexendo shares could have a bit more room to run in the near term.
How Does CXDO Stack Up to the Competition?
Shares of CXDO have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is HealthStream, Inc. (HSTM - Free Report) . HSTM has a Zacks Rank of #2 (Buy) and a Value Score of B, a Growth Score of B, and a Momentum Score of C.
Earnings were strong last quarter. HealthStream, Inc. beat our consensus estimate by 25.00%, and for the current fiscal year, HSTM is expected to post earnings of $0.74 per share on revenue of $326.86 million.
Shares of HealthStream, Inc. have gained 6.7% over the past month, and currently trade at a forward P/E of 31.01X and a P/CF of 8.75X.
The Internet - Services industry may rank in the bottom 60% of all the industries we have in our universe, but there still looks like there are some nice tailwinds for CXDO and HSTM, even beyond their own solid fundamental situation.