In the latest close session, SoundHound AI, Inc. (SOUN) was up +2.3% at $7.12. The stock outpaced the S&P 500's daily gain of 1.09%. Elsewhere, the Dow gained 0.14%, while the tech-heavy Nasdaq added 1.91%.
The company's stock has dropped by 17.63% in the past month, falling short of the Computer and Technology sector's gain of 0.22% and the S&P 500's gain of 0.29%.
Market participants will be closely following the financial results of SoundHound AI, Inc. in its upcoming release. The company is predicted to post an EPS of -$0.05, indicating a 66.67% decline compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $52.61 million, up 23.27% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of -$0.18 per share and a revenue of $233.14 million, representing changes of -38.46% and +38.02%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for SoundHound AI, Inc. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, there's been a 18.3% fall in the Zacks Consensus EPS estimate. SoundHound AI, Inc. is currently a Zacks Rank #4 (Sell).
The Computers - IT Services industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 167, this industry ranks in the bottom 32% of all industries, numbering over 250.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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SoundHound AI, Inc. (SOUN): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).