The latest trading session saw AudioEye (AEYE) ending at $18.13, denoting a -0.28% adjustment from its last day's close. The stock's change was less than the S&P 500's daily gain of 0.61%. Meanwhile, the Dow gained 0.3%, and the Nasdaq, a tech-heavy index, added 1.28%.
Prior to today's trading, shares of the company had gained 7.83% over the past month. This has outpaced the Computer and Technology sector's gain of 1.24% and the S&P 500's gain of 2.08% in that time.
The investment community will be paying close attention to the earnings performance of AudioEye in its upcoming release. It is anticipated that the company will report an EPS of $0.18, marking a 63.64% rise compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $9.73 million, indicating a 23.67% increase compared to the same quarter of the previous year.
Investors might also notice recent changes to analyst estimates for AudioEye. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, 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, there's been no change in the Zacks Consensus EPS estimate. AudioEye is holding a Zacks Rank of #3 (Hold) right now.
In the context of valuation, AudioEye is at present trading with a Forward P/E ratio of 26.54. For comparison, its industry has an average Forward P/E of 29.01, which means AudioEye is trading at a discount to the group.
It's also important to note that AEYE currently trades at a PEG ratio of 1.06. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Internet - Software was holding an average PEG ratio of 2.19 at yesterday's closing price.
The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 41, placing it within the top 17% of over 250 industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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