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

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In the latest market close, SoundHound AI, Inc. (SOUN - Free Report) reached $8.33, with a +1.09% movement compared to the previous day. This change outpaced the S&P 500's 0.57% gain on the day. Elsewhere, the Dow saw an upswing of 0.83%, while the tech-heavy Nasdaq appreciated by 0.39%.

The company's shares have seen an increase of 115.71% over the last month, surpassing the Computer and Technology sector's gain of 3.42% and the S&P 500's gain of 2.97%.

Investors will be eagerly watching for the performance of SoundHound AI, Inc. in its upcoming earnings disclosure. The company's upcoming EPS is projected at -$0.09, signifying a 25% increase compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $10.12 million, showing a 50.86% escalation compared to the year-ago quarter.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of -$0.29 per share and a revenue of $69.75 million, indicating changes of +23.68% and +52.04%, respectively, from the former year.

Investors might also notice recent changes to analyst estimates for SoundHound AI, Inc. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an 8.41% decrease. Right now, SoundHound AI, Inc. possesses a Zacks Rank of #3 (Hold).

The Computers - IT Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 54, putting it in the top 22% of all 250+ industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

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


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