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SoundHound AI, Inc. (SOUN) Exceeds Market Returns: Some Facts to Consider

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In the latest trading session, SoundHound AI, Inc. (SOUN - Free Report) closed at $18.25, marking a +2.24% move from the previous day. The stock exceeded the S&P 500, which registered a gain of 0.37% for the day. On the other hand, the Dow registered a loss of 0.14%, and the technology-centric Nasdaq increased by 0.71%.

Shares of the company have appreciated by 25.17% over the course of the past month, outperforming the Computer and Technology sector's gain of 8.04%, and the S&P 500's gain of 4.26%.

The investment community will be paying close attention to the earnings performance of SoundHound AI, Inc. in its upcoming release. In that report, analysts expect SoundHound AI, Inc. to post earnings of -$0.04 per share. This would mark year-over-year growth of 33.33%. Meanwhile, the latest consensus estimate predicts the revenue to be $40.1 million, indicating a 59.83% increase compared to the same quarter of the previous year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of -$0.13 per share and a revenue of $165.37 million, representing changes of +87.5% and +95.26%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for SoundHound AI, Inc. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 3.67% downward. SoundHound AI, Inc. is currently a Zacks Rank #3 (Hold).

The Computers - IT Services industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 70, this industry ranks in the top 29% of all industries, numbering over 250.

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.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


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