AudioEye (AEYE) Laps the Stock Market: Here's Why
AudioEye (AEYE) ended the recent trading session at $21.42, demonstrating a +0.56% swing from the preceding day's closing price. The stock's performance was ahead of the S&P 500's daily gain of 0.41%. On the other hand, the Dow registered a gain of 0.69%, and the technology-centric Nasdaq increased by 0.8%.
The the stock of company has fallen by 1.93% in the past month, lagging the Computer and Technology sector's loss of 0.01% and the S&P 500's loss of 0.97%.
Analysts and investors alike will be keeping a close eye on the performance of AudioEye in its upcoming earnings disclosure. The company's earnings report is set to go public on November 7, 2024. The company is expected to report EPS of $0.14, up 600% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $8.91 million, indicating a 13.6% growth compared to the corresponding quarter of the prior year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $0.47 per share and revenue of $35 million, indicating changes of +327.27% and +11.76%, respectively, compared to the previous year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for AudioEye. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. The Zacks Consensus EPS estimate has moved 3.45% higher within the past month. AudioEye is currently a Zacks Rank #3 (Hold).
From a valuation perspective, AudioEye is currently exchanging hands at a Forward P/E ratio of 45.32. For comparison, its industry has an average Forward P/E of 30.5, which means AudioEye is trading at a premium to the group.
Meanwhile, AEYE's PEG ratio is currently 1.81. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Internet - Software industry currently had an average PEG ratio of 2.28 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 83, putting it in the top 33% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Zacks Investment Research