SoundHound AI, Inc. (SOUN) closed at $9.94 in the latest trading session, marking a +1.02% move from the prior day. The stock outperformed the S&P 500, which registered a daily gain of 0.41%. At the same time, the Dow lost 0.83%, and the tech-heavy Nasdaq gained 0.91%.
The company's shares have seen a decrease of 5.48% over the last month, not keeping up with the Computer and Technology sector's gain of 0.49% and the S&P 500's gain of 0.38%.
The investment community will be closely monitoring the performance of SoundHound AI, Inc. in its forthcoming earnings report. The company is expected to report EPS of -$0.02, up 97.1% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $53.96 million, indicating a 56.22% growth compared to the corresponding quarter of the prior year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of -$0.15 per share and revenue of $167.84 million. These totals would mark changes of +85.58% and 0%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for SoundHound AI, Inc. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. SoundHound AI, Inc. is holding a Zacks Rank of #3 (Hold) right now.
The Computers - IT Services industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 95, finds itself in the top 39% 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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SoundHound AI, Inc. (SOUN): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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