Post by
Captain71 on Feb 15, 2024 6:05pm
Zacks
Zacks Equity Research
Tue, February 13, 2024
For Sangoma Technologies Corporation, rising earnings estimates and the consequent rating upgrade fundamentally mean an improvement in the company's underlying business. And investors' appreciation of this improving business trend should push the stock higher.
Earnings Estimate Revisions for Sangoma Technologies Corporation
For the fiscal year ending June 2024, this company is expected to earn -$0.27 per share, which is a change of -35% from the year-ago reported number.
Analysts have been steadily raising their estimates for Sangoma Technologies Corporation. Over the past three months, the Zacks Consensus Estimate for the company has increased 10%.
Bottom Line
Unlike the overly optimistic Wall Street analysts whose rating systems tend to be weighted toward favorable recommendations, the Zacks rating system maintains an equal proportion of 'buy' and 'sell' ratings for its entire universe of more than 4000 stocks at any point in time. Irrespective of market conditions, only the top 5% of the Zacks-covered stocks get a 'Strong Buy' rating and the next 15% get a 'Buy' rating. So, the placement of a stock in the top 20% of the Zacks-covered stocks indicates its superior earnings estimate revision feature, making it a solid candidate for producing market-beating returns in the near term.
The upgrade of Sangoma Technologies Corporation to a Zacks Rank #2 positions it in the top 20% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher in the near term.