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Veritone (VERI) Moves 23.0% Higher: Will This Strength Last?

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Veritone, Inc. (VERI - Free Report) shares ended the last trading session 23% higher at $6.16. 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 170.8% gain over the past four weeks.

The stock is benefitting from the exponential growth in demand for Veritone’s AI applications, aiWARE platform and solution capabilities, with the largest qualified pipeline on record.

This company is expected to post quarterly loss of $0.21 per share in its upcoming report, which represents a year-over-year change of +19.2%. Revenues are expected to be $30.71 million, up 1.5% 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 Veritone, the consensus EPS estimate for the quarter has been revised 2% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on VERI going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Veritone is a member of the Zacks Technology Services industry. One other stock in the same industry, Jacobs Solutions (J - Free Report) , finished the last trading session 0.2% higher at $150.38. J has returned 2.5% over the past month.

For Jacobs Solutions, the consensus EPS estimate for the upcoming report has changed -0.6% over the past month to $1.89. This represents a change of +4.4% from what the company reported a year ago. Jacobs Solutions currently has a Zacks Rank of #3 (Hold).


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