8x8 (EGHT) Upgraded to Buy: Here's What You Should Know

Core Viewpoint - 8x8 (EGHT) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook based on rising earnings estimates, which significantly influence stock prices [1][2]. Earnings Estimates and Stock Price Movement - The Zacks rating system emphasizes the correlation between changes in earnings estimates and stock price movements, making it a valuable tool for investors [2][3]. - Institutional investors utilize earnings estimates to determine the fair value of stocks, leading to price movements based on their buying or selling actions [3]. Company Performance and Outlook - The upgrade for 8x8 reflects an improvement in the company's underlying business, suggesting that investor sentiment may drive the stock price higher [4]. - The Zacks Consensus Estimate for 8x8 has increased by 300% over the past three months, although the expected earnings per share for the fiscal year ending March 2025 is projected to be $0.36, representing a year-over-year decline of 23.4% [7]. Zacks Rank System - The Zacks Rank system categorizes stocks into five groups based on earnings estimates, with a strong historical performance, particularly for Zacks Rank 1 stocks, which have averaged a +25% annual return since 1988 [6]. - The upgrade of 8x8 to a Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, indicating a strong potential for market-beating returns in the near term [9].