SoundThinking, Inc. SSTI shares soared 7.2% in the last trading session to close at $7. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 27.1% loss over the past four weeks.
SoundThinking’s rally is primarily driven by optimism over the increase in revenues from New York City, driven by two three-year contract renewals with the New York City Police Department. SSTI’s ability to expand the customer base, broaden its international presence and increase sales of security solutions bodes well.
This maker of gunfire detection systems is expected to post quarterly loss of $0.12 per share in its upcoming report, which represents a year-over-year change of +62.5%. Revenues are expected to be $24.63 million, up 5.2% 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 SoundThinking, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on SSTI going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
SoundThinking is part of the Zacks Security and Safety Services industry. Alarm.com Holdings (ALRM), another stock in the same industry, closed the last trading session 3.9% higher at $48.22. ALRM has returned -10.6% in the past month.
Alarm.com's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.66. Compared to the company's year-ago EPS, this represents a change of +13.8%. Alarm.com currently boasts a Zacks Rank of #3 (Hold).
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SoundThinking, Inc. (SSTI): Free Stock Analysis Report Alarm.com Holdings, Inc. (ALRM): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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