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AudioCodes (AUDC) Soars 6.8%: Is Further Upside Left in the Stock?

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AudioCodes (AUDC - Free Report) shares ended the last trading session 6.8% higher at $10.32. 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 4.6% gain over the past four weeks.

AudioCodes is placing strong emphasis on integrating generative AI capabilities across its product suite. The company recently introduced an AI-native intelligent meeting room solution designed to enhance hybrid meeting experience for enterprises across industries. Its AI meeting summarization feature efficiently creates meeting summaries and eliminates the manual note-taking process. The solution includes AudioCodes’ RXV series devices and cameras with built-in visual AI features that effectively support face detection, speaker tracking and multi-camera streaming. Incorporation of these leading-edge capabilities will increase the engagement and overall productivity of all the participants, whether they are working from the office or home.   

The growing proliferation of the digital workplace is driving demand for AUDC’s robust portfolio of cloud-native applications, advanced voice AI technologies, and comprehensive communication solutions. These factors have instilled investor optimism, which probably propelled the share price appreciation.

This communication components company is expected to post quarterly earnings of $0.24 per share in its upcoming report, which represents a year-over-year change of -14.3%. Revenues are expected to be $61.53 million, down 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 AudioCodes, 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 AUDC 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 >>>>

AudioCodes is part of the Zacks Communication - Components industry. Arista Networks (ANET - Free Report) , another stock in the same industry, closed the last trading session 1.5% lower at $112.64. ANET has returned 1.8% in the past month.

For Arista Networks, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.57. This represents a change of +9.6% from what the company reported a year ago. Arista Networks currently has a Zacks Rank of #2 (Buy).


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