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Strength Seen in Radcom (RDCM): Can Its 11.4% Jump Turn into More Strength?
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Radcom (RDCM - Free Report) shares ended the last trading session 11.4% higher at $14.5. 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 2.1% gain over the past four weeks.
The increase in share price can be attributed to healthy demand for its cutting-edge 5G assurance solutions, infused with artificial intelligence (AI) capabilities. The strength in demand for its RADCOM ACE platform is prominent across North America and Europe.
It continues to ink lucrative deals, ensuring steady, long-term revenue streams. RDCM has secured a multi-year contract with Norlys, owner of Telia Denmark, replacing the incumbent assurance vendor and reinforcing its position as a trusted partner for disruptive telcos in Europe. The company is investing in research and development to introduce cutting-edge AI and Generative AI capabilities, which are expected to support network management, improve customer satisfaction and drive automation for telecom operators transitioning to standalone 5G networks.
Revenues in the last reported quarter were a record $16.6 million, jumping 17.5% year over year. Driven by healthy momentum, RDCM has provided revenue guidance for full-year 2025. It expects revenue growth to range between 15% and 18%, with a midpoint of $71 million, which implies a 13.5% increase from 2024. Earlier, the company had projected revenue growth to be between 12% and 15%, with a midpoint of $69.2 million.
This monitoring service for the communications industry is expected to post quarterly earnings of $0.22 per share in its upcoming report, which represents a year-over-year change of +10%. Revenues are expected to be $17 million, up 14.9% 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 Radcom, 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 RDCM going forward to see if this recent jump can turn into more strength down the road.
Radcom is part of the Zacks Computer - Networking industry. NetScout Systems (NTCT - Free Report) , another stock in the same industry, closed the last trading session 0.6% higher at $23.04. NTCT has returned -4% in the past month.
NetScout's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.29. Compared to the company's year-ago EPS, this represents a change of +3.6%. NetScout currently boasts a Zacks Rank of #3 (Hold).
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Strength Seen in Radcom (RDCM): Can Its 11.4% Jump Turn into More Strength?
Radcom (RDCM - Free Report) shares ended the last trading session 11.4% higher at $14.5. 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 2.1% gain over the past four weeks.
The increase in share price can be attributed to healthy demand for its cutting-edge 5G assurance solutions, infused with artificial intelligence (AI) capabilities. The strength in demand for its RADCOM ACE platform is prominent across North America and Europe.
It continues to ink lucrative deals, ensuring steady, long-term revenue streams. RDCM has secured a multi-year contract with Norlys, owner of Telia Denmark, replacing the incumbent assurance vendor and reinforcing its position as a trusted partner for disruptive telcos in Europe. The company is investing in research and development to introduce cutting-edge AI and Generative AI capabilities, which are expected to support network management, improve customer satisfaction and drive automation for telecom operators transitioning to standalone 5G networks.
Revenues in the last reported quarter were a record $16.6 million, jumping 17.5% year over year. Driven by healthy momentum, RDCM has provided revenue guidance for full-year 2025. It expects revenue growth to range between 15% and 18%, with a midpoint of $71 million, which implies a 13.5% increase from 2024. Earlier, the company had projected revenue growth to be between 12% and 15%, with a midpoint of $69.2 million.
This monitoring service for the communications industry is expected to post quarterly earnings of $0.22 per share in its upcoming report, which represents a year-over-year change of +10%. Revenues are expected to be $17 million, up 14.9% 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 Radcom, 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 RDCM 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 >>>>
Radcom is part of the Zacks Computer - Networking industry. NetScout Systems (NTCT - Free Report) , another stock in the same industry, closed the last trading session 0.6% higher at $23.04. NTCT has returned -4% in the past month.
NetScout's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.29. Compared to the company's year-ago EPS, this represents a change of +3.6%. NetScout currently boasts a Zacks Rank of #3 (Hold).