In the latest trading session, SoundHound AI, Inc. (SOUN) closed at $6.97, marking a +1.9% move from the previous day. The stock exceeded the S&P 500, which registered a gain of 1.18% for the day. Meanwhile, the Dow experienced a rise of 0.66%, and the technology-dominated Nasdaq saw an increase of 1.96%.
Shares of the company have depreciated by 9.28% over the course of the past month, underperforming the Computer and Technology sector's gain of 5.37%, and the S&P 500's gain of 3.93%.
Market participants will be closely following the financial results of SoundHound AI, Inc. in its upcoming release. It is anticipated that the company will report an EPS of -$0.05, marking a 16.67% rise compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $42.71 million, up 46.61% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of -$0.09 per share and revenue of $232.73 million, indicating changes of +30.77% and +37.77%, respectively, compared to the previous year.
It is also important to note the recent changes to analyst estimates for SoundHound AI, Inc. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. SoundHound AI, Inc. is currently sporting a Zacks Rank of #3 (Hold).
The Computers - IT Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 84, putting it in the top 35% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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SoundHound AI, Inc. (SOUN): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).