Back to top

Image: Bigstock

Arteris, Inc. (AIP) Soars 17.4%: Is Further Upside Left in the Stock?

Read MoreHide Full Article

Arteris, Inc. (AIP - Free Report) shares soared 17.4% in the last trading session to close at $6.34. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 15% loss over the past four weeks.

The upswing came after Arteris revealed that it has partnered with Semidynamics to accelerate electronic product innovation for artificial intelligence, machine learning and high-performance computing applications. The collaboration will support the interoperability between Arteris’ Ncore cache coherent network-on-chip system IP and Semidynamics' Atrevido and Avispado 64-bit RISC-V processor IP cores.

This company is expected to post quarterly loss of $0.19 per share in its upcoming report, which represents a year-over-year change of -46.2%. Revenues are expected to be $13 million, up 3.2% 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 Arteris, Inc., 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 AIP 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 >>>>

Arteris, Inc. is a member of the Zacks Internet - Software industry. One other stock in the same industry, MongoDB (MDB - Free Report) , finished the last trading session 3% lower at $329. MDB has returned 0.9% over the past month.

MongoDB's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.49. Compared to the company's year-ago EPS, this represents a change of +113%. MongoDB currently boasts a Zacks Rank of #3 (Hold).

See More Zacks Research for These Tickers

Normally $25 each - click below to receive one report FREE:

MongoDB, Inc. (MDB) - free report >>

Arteris, Inc. (AIP) - free report >>

Published in