Cerence CRNC shares ended the last trading session 14.8% higher at $9.96. 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 1.6% gain over the past four weeks.
Cerence is benefiting from increased adoption of connected vehicle technologies, advancements in AI-driven automotive solutions, and diversification into non-automotive verticals.
This automotive artificial intelligence developer is expected to post quarterly loss of $0.34 per share in its upcoming report, which represents a year-over-year change of -279%. Revenues are expected to be $53.93 million, down 23.6% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Cerence, 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 CRNC 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 >>>>
Cerence is a member of the Zacks Computers - IT Services industry. One other stock in the same industry, Telos Corporation TLS, finished the last trading session 1.2% higher at $2.54. TLS has returned 2.5% over the past month.
For Telos, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.05. This represents a change of +44.4% from what the company reported a year ago. Telos currently has a Zacks Rank of #3 (Hold).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Cerence Inc. (CRNC): Free Stock Analysis Report Telos Corporation (TLS): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
