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AudioEye (AEYE) Stock Drops Despite Market Gains: Important Facts to Note

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AudioEye (AEYE - Free Report) ended the recent trading session at $13.33, demonstrating a -8.15% change from the preceding day's closing price. This change lagged the S&P 500's daily gain of 0.02%. Elsewhere, the Dow saw a downswing of 0.14%, while the tech-heavy Nasdaq appreciated by 0.33%.

Heading into today, shares of the company had gained 26.17% over the past month, outpacing the Computer and Technology sector's gain of 6.31% and the S&P 500's gain of 4.93%.

The upcoming earnings release of AudioEye will be of great interest to investors. The company's earnings report is expected on August 7, 2025. The company is forecasted to report an EPS of $0.16, showcasing a 33.33% upward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $9.94 million, indicating a 17.31% growth compared to the corresponding quarter of the prior year.

AEYE's full-year Zacks Consensus Estimates are calling for earnings of $0.71 per share and revenue of $41.51 million. These results would represent year-over-year changes of +29.09% and +17.91%, respectively.

Any recent changes to analyst estimates for AudioEye should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. AudioEye presently features a Zacks Rank of #3 (Hold).

Looking at valuation, AudioEye is presently trading at a Forward P/E ratio of 20.58. For comparison, its industry has an average Forward P/E of 29.26, which means AudioEye is trading at a discount to the group.

One should further note that AEYE currently holds a PEG ratio of 0.82. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. By the end of yesterday's trading, the Internet - Software industry had an average PEG ratio of 2.21.

The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 78, putting it in the top 32% of all 250+ industries.

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

To follow AEYE in the coming trading sessions, be sure to utilize Zacks.com.


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