AudioEye (AEYE) saw its shares surge in the last session with trading volume being higher than average. The latest trend in earnings estimate revisions may not
AudioEye AEYE shares ended the last trading session 9.1% higher at $6.95. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 13.3% loss over the past four weeks.
AudioEye benefits from increasing regulatory requirements, rising accessibility litigation, AI-driven expansion of accessibility problems, proprietary data and AI advantage and next-generation platform launch.
This company is expected to post quarterly earnings of $0.17 per share in its upcoming report, which represents a year-over-year change of +13.3%. Revenues are expected to be $10.54 million, up 8.3% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For AudioEye, the consensus EPS estimate for the quarter has been revised 6.7% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on AEYE going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
AudioEye is a member of the Zacks Internet - Software industry. One other stock in the same industry, Allot Communications ALLT, finished the last trading session 3.9% higher at $6.92. ALLT has returned -3.8% over the past month.
For Allot Communications, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.05. This represents a change of +150% from what the company reported a year ago. Allot Communications currently has a Zacks Rank of #3 (Hold).
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