SoundHound AI, Inc. (SOUN) closed the most recent trading day at $6.01, moving -1.8% from the previous trading session. The stock's change was less than the S&P 500's daily loss of 0.76%. Elsewhere, the Dow lost 0.68%, while the tech-heavy Nasdaq lost 1.13%.
The stock of company has fallen by 13.19% in the past month, lagging the Computer and Technology sector's gain of 6.68% and the S&P 500's gain of 1.26%.
The investment community will be closely monitoring the performance of SoundHound AI, Inc. in its forthcoming earnings report. The company's upcoming EPS is projected at -$0.06, signifying a 100.00% drop compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $62.43 million, indicating a 48.47% growth compared to the corresponding quarter of the prior year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of -$0.18 per share and a revenue of $238.2 million, representing changes of -38.46% and +41.02%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for SoundHound AI, Inc. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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, the Zacks Consensus EPS estimate remained stagnant. SoundHound AI, Inc. is currently sporting a Zacks Rank of #2 (Buy).
The Computers - IT Services industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 92, finds itself in the top 38% echelons of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow SOUN in the coming trading sessions, be sure to utilize Zacks.com.
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SoundHound AI, Inc. (SOUN): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).