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Sonim (SONM) Outpaces Stock Market Gains: What You Should Know

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In the latest market close, Sonim (SONM - Free Report) reached $0.73, with a +0.55% movement compared to the previous day. The stock outpaced the S&P 500's daily gain of 0.29%. Meanwhile, the Dow lost 0.25%, and the Nasdaq, a tech-heavy index, added 0.43%.

The company's shares have seen an increase of 1.83% over the last month, not keeping up with the Computer and Technology sector's gain of 3.67% and the S&P 500's gain of 2.08%.

The investment community will be closely monitoring the performance of Sonim in its forthcoming earnings report.

Any recent changes to analyst estimates for Sonim should also be noted by investors. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Sonim is holding a Zacks Rank of #3 (Hold) right now.

Looking at valuation, Sonim is presently trading at a Forward P/E ratio of 12.03. This represents a discount compared to its industry's average Forward P/E of 14.34.

The Wireless Equipment industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 100, finds itself in the top 40% echelons of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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