We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Five9, Inc. (FIVN) Hit a 52 Week High, Can the Run Continue?
Read MoreHide Full Article
Have you been paying attention to shares of Five9 (FIVN - Free Report) ? Shares have been on the move with the stock up 20.2% over the past month. The stock hit a new 52-week high of $35.18 in the previous session. Five9 has gained 70.1% since the start of the year compared to the 17.6% gain for the Zacks Computer and Technology sector and the 0.9% return for the Zacks Internet - Software industry.
What's Driving the Outperformance?
The stock has an impressive record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on August 6, 2026, Five9 reported EPS of $0.7 versus consensus estimate of $0.68.
For the current fiscal year, Five9 is expected to post earnings of $3.25 per share on $1.27 in revenues. This represents a 9.8% change in EPS on a 10.15% change in revenues. For the next fiscal year, the company is expected to earn $3.79 per share on $1.39 in revenues. This represents a year-over-year change of 16.51% and 9.9%, respectively.
Valuation Metrics
Though Five9 has recently hit a 52-week high, what is next for Five9? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort 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.
Five9 has a Value Score of B. The stock's Growth and Momentum Scores are B and D, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 10.5X current fiscal year EPS estimates, which is not in-line with the peer industry average of 21X. On a trailing cash flow basis, the stock currently trades at 10.5X versus its peer group's average of 22.3X. 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 look at the Zacks Rank for the stock, as this is even more important than the company's VGM Score. Fortunately, Five9 currently has a Zacks Rank of #2 (Buy) thanks to favorable earnings estimate revisions from covering analysts.
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 Five9 passes the test. Thus, it seems as though Five9 shares could have a bit more room to run in the near term.
How Does FIVN Stack Up to the Competition?
Shares of FIVN 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 Paycom Software, Inc. (PAYC - Free Report) . PAYC has a Zacks Rank of #1 (Strong Buy) and a Value Score of C, a Growth Score of C, and a Momentum Score of C.
Earnings were strong last quarter. Paycom Software, Inc. beat our consensus estimate by 21.93%, and for the current fiscal year, PAYC is expected to post earnings of $11.90 per share on revenue of $2.21 billion.
Shares of Paycom Software, Inc. have gained 11.4% over the past month, and currently trade at a forward P/E of 20.21X and a P/CF of 23.43X.
The Internet - Software industry is in the top 31% of all the industries we have in our universe, so it looks like there are some nice tailwinds for FIVN and PAYC, even beyond their own solid fundamental situation.
View the Zacks #1 Rank List
Image: Bigstock
Five9, Inc. (FIVN) Hit a 52 Week High, Can the Run Continue?
Have you been paying attention to shares of Five9 (FIVN - Free Report) ? Shares have been on the move with the stock up 20.2% over the past month. The stock hit a new 52-week high of $35.18 in the previous session. Five9 has gained 70.1% since the start of the year compared to the 17.6% gain for the Zacks Computer and Technology sector and the 0.9% return for the Zacks Internet - Software industry.
What's Driving the Outperformance?
The stock has an impressive record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on August 6, 2026, Five9 reported EPS of $0.7 versus consensus estimate of $0.68.
For the current fiscal year, Five9 is expected to post earnings of $3.25 per share on $1.27 in revenues. This represents a 9.8% change in EPS on a 10.15% change in revenues. For the next fiscal year, the company is expected to earn $3.79 per share on $1.39 in revenues. This represents a year-over-year change of 16.51% and 9.9%, respectively.
Valuation Metrics
Though Five9 has recently hit a 52-week high, what is next for Five9? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort 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.
Five9 has a Value Score of B. The stock's Growth and Momentum Scores are B and D, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 10.5X current fiscal year EPS estimates, which is not in-line with the peer industry average of 21X. On a trailing cash flow basis, the stock currently trades at 10.5X versus its peer group's average of 22.3X. 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 look at the Zacks Rank for the stock, as this is even more important than the company's VGM Score. Fortunately, Five9 currently has a Zacks Rank of #2 (Buy) thanks to favorable earnings estimate revisions from covering analysts.
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 Five9 passes the test. Thus, it seems as though Five9 shares could have a bit more room to run in the near term.
How Does FIVN Stack Up to the Competition?
Shares of FIVN 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 Paycom Software, Inc. (PAYC - Free Report) . PAYC has a Zacks Rank of #1 (Strong Buy) and a Value Score of C, a Growth Score of C, and a Momentum Score of C.
Earnings were strong last quarter. Paycom Software, Inc. beat our consensus estimate by 21.93%, and for the current fiscal year, PAYC is expected to post earnings of $11.90 per share on revenue of $2.21 billion.
Shares of Paycom Software, Inc. have gained 11.4% over the past month, and currently trade at a forward P/E of 20.21X and a P/CF of 23.43X.
The Internet - Software industry is in the top 31% of all the industries we have in our universe, so it looks like there are some nice tailwinds for FIVN and PAYC, even beyond their own solid fundamental situation.