Latest news with #InternetSoftware
Yahoo
3 days ago
- Business
- Yahoo
Investors Heavily Search Affirm Holdings, Inc. (AFRM): Here is What You Need to Know
Affirm Holdings (AFRM) is one of the stocks most watched by visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock. Over the past month, shares of this operator of digital commerce platform have returned +10.9%, compared to the Zacks S&P 500 composite's +3.3% change. During this period, the Zacks Internet - Software industry, which Affirm Holdings falls in, has gained 6.1%. The key question now is: What could be the stock's future direction? While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making. Revisions to Earnings Estimates Here at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock. Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements. For the current quarter, Affirm Holdings is expected to post earnings of $0.11 per share, indicating a change of +178.6% from the year-ago quarter. The Zacks Consensus Estimate has changed +56.3% over the last 30 days. For the current fiscal year, the consensus earnings estimate of $0.05 points to a change of +103% from the prior year. Over the last 30 days, this estimate has changed +2.3%. For the next fiscal year, the consensus earnings estimate of $0.76 indicates a change of +0% from what Affirm Holdings is expected to report a year ago. Over the past month, the estimate has changed +2.7%. With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Affirm Holdings. The chart below shows the evolution of the company's forward 12-month consensus EPS estimate: 12 Month EPS Projected Revenue Growth While earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth. In the case of Affirm Holdings, the consensus sales estimate of $839.88 million for the current quarter points to a year-over-year change of +27.4%. The $3.19 billion and $3.92 billion estimates for the current and next fiscal years indicate changes of +37.2% and +22.8%, respectively. Last Reported Results and Surprise History Affirm Holdings reported revenues of $783.14 million in the last reported quarter, representing a year-over-year change of +35.9%. EPS of $0.01 for the same period compares with -$0.43 a year ago. Compared to the Zacks Consensus Estimate of $783.85 million, the reported revenues represent a surprise of -0.09%. The EPS surprise was +111.11%. The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates three times over this period. Valuation No investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance. While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price. The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued. Affirm Holdings is graded F on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade. Conclusion The facts discussed here and much other information on might help determine whether or not it's worthwhile paying attention to the market buzz about Affirm Holdings. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Affirm Holdings, Inc. (AFRM) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
3 days ago
- Business
- Yahoo
Zacks Industry Outlook Highlights Arista Networks, Reddit and Astera Labs
For Immediate Release Chicago, IL – August 15, 2025 – Today, Zacks Equity Research discusses Arista Networks ANET, Reddit RDDT and Astera Labs ALAB. Industry: Internet Software Link: The Zacks Internet Software industry has been benefiting from accelerated demand for digital transformation and the ongoing shift to the cloud. The high demand for Software as a Service or SaaS-based solutions due to the increasing need for remote working, learning and diagnosis software has been a major driver for industry players. The growing demand for solutions that support hybrid operating environments is a key catalyst. The increasing deployment of AI and generative AI is driving prospects. Industry players are leveraging AI to generate content that is keeping users engaged and attracting advertisers. Increasingly sophisticated cyberattacks have been driving cybersecurity application demand. Arista Networks, Reddit and Astera Labs are benefiting from these trends. However, heightened geopolitical risks and tariff uncertainties are major headwinds. Industry Description The Zacks Internet Software industry comprises companies offering application performance monitoring, infrastructure and application software, DevOps deployment and Security software. Industry participants offer online payment solutions, asset optimization software, multi-cloud application security and delivery, social networking, 3D printing applications, and cloud content management solutions. They use the SaaS-based cloud computing model to deliver solutions to end-users, as well as enterprises. Hence, subscription is the primary revenue source. Advertising is also a major revenue source. Industry participants target a variety of end markets, including banking and financial services, construction, consumer packaged goods, education, energy, legal, various service providers, federal governments, and animal health technology and services. 3 Trends Shaping the Future of the Internet Software Industry : The industry has been benefiting from the continued demand for digital transformation. Growth prospects are alluring due to the rapid adoption of SaaS, which offers a flexible and cost-effective delivery method for applications. It also cuts down on deployment time compared with legacy systems. SaaS attempts to deliver applications to any user, anywhere, anytime and on any device. It has been effective in addressing customer expectations of seamless communications across multiple channels, including voice, chat, email, web, social media and mobile. This increases customer satisfaction and raises the retention rate, driving the top lines of the industry participants. Moreover, the SaaS delivery model has supported industry players in delivering software applications amid the coronavirus-led lockdowns and shelter-in-place guidance. Remote work, learning and health diagnosis have also boosted the demand for SaaS-based software applications. : The increasing customer-centric approach is allowing end-users to perform all required actions with minimal intervention from software providers. The pay-as-you-go model helps Internet Software providers scale their offerings according to different user needs. The subscription-based business model ensures recurring revenues for industry participants. The affordability of the SaaS delivery model, particularly for small and medium-sized businesses, is another major driver. The cloud-based applications are easy to use. Hence, the need for specialized training is reduced significantly, which lowers expenses, driving profits. : The growing need to secure cloud platforms amid the increasing incidences of cyberattacks and hacking drives the demand for web-based cybersecurity software. As enterprises continue to move their on-premise workload to cloud environments, application and infrastructure monitoring are gaining importance. This is increasing the demand for web-based performance management monitoring tools. Zacks Industry Rank Indicates Bright Prospects The Zacks Internet Software industry, placed within the broader Zacks Computer And Technology sector, carries a Zacks Industry Rank #74, which places it in the top 30% of more than 250 Zacks industries. The group's Zacks Industry Rank, which is the average of the Zacks Rank of all the member stocks, indicates bright near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than two to one. The industry's position in the top 50% of the Zacks-ranked industries is a result of a positive earnings outlook for the constituent companies in aggregate. Looking at the aggregate earnings estimate revisions, it appears that analysts are optimistic about this group's earnings growth potential. The industry's earnings estimates for 2025 have moved up 8.1% since April 30, 2025. Given the positive outlook of the industry, there are several stocks worth picking for healthy portfolio returns. However, before we present the top industry picks, it is worth looking at the industry's shareholder returns and current valuation first. Industry Beats S&P 500 and Sector The Zacks Internet Software industry has outperformed the broader Zacks Computer and Technology sector and the S&P 500 Index in the past year. The industry has returned 43.9% over this period compared with the S&P 500's jump of 17.5% and the broader sector's appreciation of 24.2%. Industry's Current Valuation On the basis of forward 12-month price-to-sales (P/S), which is a commonly used multiple for valuing Internet Software stocks, we see that the industry is currently trading at 5.81X compared with the S&P 500's 5.3X and the sector's forward 12-month P/S of 6.8X. Over the last five years, the industry has traded as high as 5.94X and as low as 4.65X, with a median of 5.4X. 3 Stocks to Buy Right Now Arista Networks– A Zacks Rank #1 (Strong Buy) company, Arista Networks is benefiting from its software-driven, data-centric approach that helps customers build their cloud architecture. You can see the complete list of today's Zacks #1 Rank stocks here. Arista has made several additions to its multi-cloud and cloud-native software product family with CloudEOS Edge. The company has introduced new cognitive Wi-Fi software that delivers intelligent application identification, automated troubleshooting and location services. This supports video conferencing applications like Google Hangouts, Microsoft Teams and Zoom, driving market share. The company's shares have appreciated 24.8% in the year-to-date period. The Zacks Consensus Estimate for its 2025 earnings is pegged at $2.81 per share, up 9.8% in the past 30 days. Reddit- This Zacks Rank #1 stock is benefiting from strong growth in user engagement, including rising daily and weekly active users, ARPU gains and expanding advertiser tools like DPA, Reddit Pixel and CAPI. Reddit's AI-powered features, including Reddit Answers, are key catalysts in enhancing content discovery and personalization. Reddit Answers has more than six million weekly users. The company aims to deepen advertiser onboarding and improve campaign outcomes through integrations with and Meta Platforms' campaign import tool. Reddit shares have appreciated 43.7% year to date. The Zacks Consensus Estimate for 2025 earnings has surged 49.6% to $1.81 per share over the past 30 days. Astera Labs- This Zacks Rank #1 company is benefiting from an innovative portfolio despite tariff uncertainty and intensifying competition. The company expects third-quarter 2025 revenues between $203 million and $210 million, suggesting an increase between 6% and 9% sequentially. Astera Labs is benefiting from strong demand for Aries, Taurus and Scorpio product families, all expected to drive growth in the third quarter of 2025. ALAB expects accelerated shipments of Scorpio P-Series switches and Aries 6 retimers on a customized rack-scale AI platform based on market-leading GPUs to boost top-line growth. ALAB shares have surged 43.1% year to date. The Zacks Consensus Estimate for ALAB's fiscal 2025 earnings is pegged at $1.58 per share, up 17% over the past 30 days. Free: Instant Access to Zacks' Market-Crushing Strategies Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year. Today you can tap into those powerful strategies – and the high-potential stocks they uncover – free. No strings attached. Get all the details here >> Join us on Facebook: Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates. Media Contact Zacks Investment Research 800-767-3771 ext. 9339 support@ Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit for information about the performance numbers displayed in this press release. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Arista Networks, Inc. (ANET) : Free Stock Analysis Report Reddit Inc. (RDDT) : Free Stock Analysis Report Astera Labs, Inc. (ALAB) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
3 days ago
- Business
- Yahoo
Is Trending Stock Cloudflare, Inc. (NET) a Buy Now?
Cloudflare (NET) is one of the stocks most watched by visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock. Over the past month, shares of this web security and content delivery company have returned +2.2%, compared to the Zacks S&P 500 composite's +3.3% change. During this period, the Zacks Internet - Software industry, which Cloudflare falls in, has gained 6.1%. The key question now is: What could be the stock's future direction? Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision. Revisions to Earnings Estimates Rather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings. Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements. Cloudflare is expected to post earnings of $0.23 per share for the current quarter, representing a year-over-year change of +15%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged. For the current fiscal year, the consensus earnings estimate of $0.84 points to a change of +12% from the prior year. Over the last 30 days, this estimate has changed -9.1%. For the next fiscal year, the consensus earnings estimate of $1.09 indicates a change of +29.4% from what Cloudflare is expected to report a year ago. Over the past month, the estimate has changed +4.8%. Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Cloudflare is rated Zacks Rank #3 (Hold). The chart below shows the evolution of the company's forward 12-month consensus EPS estimate: 12 Month EPS Revenue Growth Forecast Even though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial. For Cloudflare, the consensus sales estimate for the current quarter of $544.06 million indicates a year-over-year change of +26.5%. For the current and next fiscal years, $2.11 billion and $2.66 billion estimates indicate +26.7% and +25.7% changes, respectively. Last Reported Results and Surprise History Cloudflare reported revenues of $512.32 million in the last reported quarter, representing a year-over-year change of +27.8%. EPS of $0.21 for the same period compares with $0.2 a year ago. Compared to the Zacks Consensus Estimate of $500.72 million, the reported revenues represent a surprise of +2.32%. The EPS surprise was +16.67%. Over the last four quarters, Cloudflare surpassed consensus EPS estimates three times. The company topped consensus revenue estimates each time over this period. Valuation No investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance. While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price. As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued. Cloudflare is graded F on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade. Conclusion The facts discussed here and much other information on might help determine whether or not it's worthwhile paying attention to the market buzz about Cloudflare. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Cloudflare, Inc. (NET) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Globe and Mail
3 days ago
- Business
- Globe and Mail
Zacks Industry Outlook Highlights Arista Networks, Reddit and Astera Labs
For Immediate Release Chicago, IL – August 15, 2025 – Today, Zacks Equity Research discusses Arista Networks ANET, Reddit RDDT and Astera Labs ALAB. Industry: Internet Software The Zacks Internet Software industry has been benefiting from accelerated demand for digital transformation and the ongoing shift to the cloud. The high demand for Software as a Service or SaaS-based solutions due to the increasing need for remote working, learning and diagnosis software has been a major driver for industry players. The growing demand for solutions that support hybrid operating environments is a key catalyst. The increasing deployment of AI and generative AI is driving prospects. Industry players are leveraging AI to generate content that is keeping users engaged and attracting advertisers. Increasingly sophisticated cyberattacks have been driving cybersecurity application demand. Arista Networks, Reddit and Astera Labs are benefiting from these trends. However, heightened geopolitical risks and tariff uncertainties are major headwinds. Industry Description The Zacks Internet Software industry comprises companies offering application performance monitoring, infrastructure and application software, DevOps deployment and Security software. Industry participants offer online payment solutions, asset optimization software, multi-cloud application security and delivery, social networking, 3D printing applications, and cloud content management solutions. They use the SaaS-based cloud computing model to deliver solutions to end-users, as well as enterprises. Hence, subscription is the primary revenue source. Advertising is also a major revenue source. Industry participants target a variety of end markets, including banking and financial services, construction, consumer packaged goods, education, energy, legal, various service providers, federal governments, and animal health technology and services. 3 Trends Shaping the Future of the Internet Software Industry Adoption of SaaS Grows: The industry has been benefiting from the continued demand for digital transformation. Growth prospects are alluring due to the rapid adoption of SaaS, which offers a flexible and cost-effective delivery method for applications. It also cuts down on deployment time compared with legacy systems. SaaS attempts to deliver applications to any user, anywhere, anytime and on any device. It has been effective in addressing customer expectations of seamless communications across multiple channels, including voice, chat, email, web, social media and mobile. This increases customer satisfaction and raises the retention rate, driving the top lines of the industry participants. Moreover, the SaaS delivery model has supported industry players in delivering software applications amid the coronavirus-led lockdowns and shelter-in-place guidance. Remote work, learning and health diagnosis have also boosted the demand for SaaS-based software applications. Pay-As-You-Go Model Gains Traction: The increasing customer-centric approach is allowing end-users to perform all required actions with minimal intervention from software providers. The pay-as-you-go model helps Internet Software providers scale their offerings according to different user needs. The subscription-based business model ensures recurring revenues for industry participants. The affordability of the SaaS delivery model, particularly for small and medium-sized businesses, is another major driver. The cloud-based applications are easy to use. Hence, the need for specialized training is reduced significantly, which lowers expenses, driving profits. Ongoing Transition to Cloud Creates Opportunities: The growing need to secure cloud platforms amid the increasing incidences of cyberattacks and hacking drives the demand for web-based cybersecurity software. As enterprises continue to move their on-premise workload to cloud environments, application and infrastructure monitoring are gaining importance. This is increasing the demand for web-based performance management monitoring tools. Zacks Industry Rank Indicates Bright Prospects The Zacks Internet Software industry, placed within the broader Zacks Computer And Technology sector, carries a Zacks Industry Rank #74, which places it in the top 30% of more than 250 Zacks industries. The group's Zacks Industry Rank, which is the average of the Zacks Rank of all the member stocks, indicates bright near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than two to one. The industry's position in the top 50% of the Zacks-ranked industries is a result of a positive earnings outlook for the constituent companies in aggregate. Looking at the aggregate earnings estimate revisions, it appears that analysts are optimistic about this group's earnings growth potential. The industry's earnings estimates for 2025 have moved up 8.1% since April 30, 2025. Given the positive outlook of the industry, there are several stocks worth picking for healthy portfolio returns. However, before we present the top industry picks, it is worth looking at the industry's shareholder returns and current valuation first. Industry Beats S&P 500 and Sector The Zacks Internet Software industry has outperformed the broader Zacks Computer and Technology sector and the S&P 500 Index in the past year. The industry has returned 43.9% over this period compared with the S&P 500's jump of 17.5% and the broader sector's appreciation of 24.2%. Industry's Current Valuation On the basis of forward 12-month price-to-sales (P/S), which is a commonly used multiple for valuing Internet Software stocks, we see that the industry is currently trading at 5.81X compared with the S&P 500's 5.3X and the sector's forward 12-month P/S of 6.8X. Over the last five years, the industry has traded as high as 5.94X and as low as 4.65X, with a median of 5.4X. 3 Stocks to Buy Right Now Arista Networks – A Zacks Rank #1 (Strong Buy) company, Arista Networks is benefiting from its software-driven, data-centric approach that helps customers build their cloud architecture. You can see the complete list of today's Zacks #1 Rank stocks here. Arista has made several additions to its multi-cloud and cloud-native software product family with CloudEOS Edge. The company has introduced new cognitive Wi-Fi software that delivers intelligent application identification, automated troubleshooting and location services. This supports video conferencing applications like Google Hangouts, Microsoft Teams and Zoom, driving market share. The company's shares have appreciated 24.8% in the year-to-date period. The Zacks Consensus Estimate for its 2025 earnings is pegged at $2.81 per share, up 9.8% in the past 30 days. Reddit - This Zacks Rank #1 stock is benefiting from strong growth in user engagement, including rising daily and weekly active users, ARPU gains and expanding advertiser tools like DPA, Reddit Pixel and CAPI. Reddit's AI-powered features, including Reddit Answers, are key catalysts in enhancing content discovery and personalization. Reddit Answers has more than six million weekly users. The company aims to deepen advertiser onboarding and improve campaign outcomes through integrations with and Meta Platforms' campaign import tool. Reddit shares have appreciated 43.7% year to date. The Zacks Consensus Estimate for 2025 earnings has surged 49.6% to $1.81 per share over the past 30 days. Astera Labs - This Zacks Rank #1 company is benefiting from an innovative portfolio despite tariff uncertainty and intensifying competition. The company expects third-quarter 2025 revenues between $203 million and $210 million, suggesting an increase between 6% and 9% sequentially. Astera Labs is benefiting from strong demand for Aries, Taurus and Scorpio product families, all expected to drive growth in the third quarter of 2025. ALAB expects accelerated shipments of Scorpio P-Series switches and Aries 6 retimers on a customized rack-scale AI platform based on market-leading GPUs to boost top-line growth. ALAB shares have surged 43.1% year to date. The Zacks Consensus Estimate for ALAB's fiscal 2025 earnings is pegged at $1.58 per share, up 17% over the past 30 days. Free: Instant Access to Zacks' Market-Crushing Strategies Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year. Today you can tap into those powerful strategies – and the high-potential stocks they uncover – free. No strings attached. Get all the details here >> Join us on Facebook: Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates. Media Contact Zacks Investment Research 800-767-3771 ext. 9339 support@ Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit for information about the performance numbers displayed in this press release. Zacks Names #1 Semiconductor Stock This under-the-radar company specializes in semiconductor products that titans like NVIDIA don't build. It's uniquely positioned to take advantage of the next growth stage of this market. And it's just beginning to enter the spotlight, which is exactly where you want to be. With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $971 billion by 2028. See This Stock Now for Free >> Arista Networks, Inc. (ANET): Free Stock Analysis Report Astera Labs, Inc. (ALAB): Free Stock Analysis Report
Yahoo
28-07-2025
- Business
- Yahoo
5 Must-Buy AI-Powered Internet Software Stocks to Power Your Portfolio
The Internet Software and Services space is gathering momentum owing to robust IT spending on solutions that support hybrid operating environments. Outstanding penetration of mobile devices among users makes sense for businesses to invest heavily in web-based infrastructure, applications and security software. Within the Technology sector, the Zacks-defined Internet Software industry is currently within the top 32% of the Zacks Industry Rank. Since the Internet Software industry is ranked in the top half of Zacks Ranked Industries, we expect it to outperform the market over the next three to six months. We recommend five artificial intelligence (AI)-focused stocks from this space that have strong potential for the second half of 2025. These are — UiPath Inc. PATH, Calix Inc. CALX, Arista Networks Inc. ANET, HubSpot Inc. HUBS and NICE Ltd. NICE. Each of our picks currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here. The chart below shows the price performance of our five picks year to date. Image Source: Zacks Investment Research UiPath Inc. UiPath provides an end-to-end automation platform that offers a range of robotic process automation solutions primarily in the United States, Romania, the United Kingdom, the Netherlands, and internationally. PATH offers a suite of interrelated software to build, manage, run, engage, measure, and govern automation within the organization. The PATH platform's embedded AI (artificial intelligence), ML (machine language), and NLP (Natural Language Processing) capabilities improve decisioning and information processing. PATH introduced new generative AI features, including specialized LLMs (Large Language Model) such as DocPATH and CommPATH, and Context Grounding, to enhance automated AI models for specific business needs. UiPath has an expected revenue and earnings growth rate of 8.5% and 5.7%, respectively, for the current year (ending January 2026). The Zacks Consensus Estimate for current-year earnings has improved 7.7% over the last 60 days. Calix Inc. Calix provides cloud and software platforms, and systems and services in the United States, the rest of the Americas, Europe, the Middle East, Africa, and the Asia Pacific. CALX's cloud and software platforms, and systems and services enable broadband service providers to provide a range of services. CALX offers the Calix Cloud platform comprising Calix Engagement Cloud, Calix Operations Cloud, and Calix Service Cloud, which are configurable to display role-based insights and enable BEPs to anticipate and target new revenue-generating services and applications through mobile applications, such as CommandIQ for residents and CommandWorx for businesses. CALX has integrated AI into its cloud platform and products to enhance broadband experience providers' operations, subscriber engagement, and service delivery. CALX offers AI-powered marketing solutions for the health and finance industries, AI-powered chat bots, and AI-driven initiatives like Calix AI Agents. Calix has an expected revenue and earnings growth rate of 15.3% and more than 100%, respectively, for 2025. The Zacks Consensus Estimate for 2025 earnings has improved 25.6% over the last seven days. Arista Networks Inc. Arista Networks is well-positioned with the right network architecture for client-to-campus data center cloud and AI networking backed by three guiding principles. These include the best-in-class, highly proactive products with resilience, zero-touch automation and telemetry with predictive client-to-cloud one-click operations with granular visibility and prescriptive insights for deeper AI algorithms. ANET's EOS Smart AI Suite and Arista AVA (Autonomous Virtual Assist) enhance AI job monitoring, deep-dive analytics, and proactive performance issue resolution. Its AI suite also focuses on network security and optimization. ANET's AI-powered cloud networking solutions provide predictable performance and programmability, enabling seamless integration with third-party applications for network management, automation and orchestration. Arista AVA offers augmentation of pervasive visibility, continuous threat detection, and enforcement. The growing demand for 200- and 400-gig high-performance switching products augurs well for ANET's long-term growth. Arista Networks has an expected revenue and earnings growth rate of 19.3% and 13.7%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.4% in the last 30 days. HubSpot Inc. HubSpot provides a cloud-based customer relationship management platform for businesses in the Americas, Europe, and the Asia Pacific. HUBS is witnessing steady multi-hub adoption from enterprise customers in the premium market. Pricing optimization in HUBS' starter edition is leading to solid client additions in the lower end of the market. The integration of HubSpot AI, which includes state-of-the-art features, such as AI assistance, AI agents, AI insights and ChatSpot, is driving more value to customers. HUBS' seat pricing model lowers the barrier for customers to get started with its business and mitigates pricing friction for upgrades. The growing adoption of inbound applications is a tailwind. HubSpot has an expected revenue and earnings growth rate of 15.4% and 15.2%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 2.3% in the last 90 days. NICE Ltd. NICE is benefiting from the continued strength of its cloud business, expansion of its customer base and AI-powered solutions. Increased adoption of NICE's CXone platform saw large enterprises integrating AI tools to enhance customer experience. The success of AI products like autopilot and copilot, along with a growing partner ecosystem, is expanding NICE's market reach. Investments in automation, analytics and AI-powered contact centers is strengthening its competitive edge. NICE's focus on operational efficiency and product enhancements is bolstering its cloud leadership. Also, NICE remains well-positioned for steady growth with AI-driven customer engagement solutions. NICE has an expected revenue and earnings growth rate of 7% and 11.2%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 1.6% in the last 90 days. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Calix, Inc (CALX) : Free Stock Analysis Report UiPath, Inc. (PATH) : Free Stock Analysis Report Nice (NICE) : Free Stock Analysis Report Arista Networks, Inc. (ANET) : Free Stock Analysis Report HubSpot, Inc. (HUBS) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
