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Radcom (RDCM) Moves 6.4% Higher: Will This Strength Last?
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Radcom (RDCM - Free Report) shares ended the last trading session 6.4% higher at $10.24. 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 1.5% gain over the past four weeks.
The increase in share price can attributed to the strength in demand for the company’s AI-powered analytics solutions including the RADCOM ACE product line. Renewal of a multi-year deal with Rakuten Mobile along with an extension of the contract for RADCOM ACE by a U.S. telecom operator in 2024 are tailwinds. In June 2024, the company announced that it had clinched over $45 million in new contracts since the beginning of the year.
RADCOM is also directing its efforts at embedding Generative AI technology across its product portfolio to aid operators in handling their networks more dynamically and effectively. As a part of this endeavor, RDCM has integrated its GenAI applications with Amazon Web Service.
Network operators are exploring next-generation cloud technology as they look to cut down costs amid the 5G rollout. RDCM is ramping up its efforts to boost its portfolio of assurance solutions to capitalize on this opportunity.
In the last reported quarter, revenues of $14.1 million increased 17.5% year over year. For 2024, RDCM has revised the lower end of guidance. It now projects revenues in the band of $57-$60 million compared with $56-$60 million predicted earlier.
This monitoring service for the communications industry is expected to post quarterly earnings of $0.15 per share in its upcoming report, which represents a year-over-year change of +15.4%. Revenues are expected to be $14.1 million, up 14% 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 a member of the Zacks Computer - Networking industry. One other stock in the same industry, Cisco Systems (CSCO - Free Report) , finished the last trading session 0.6% higher at $48.45. CSCO has returned 1.8% over the past month.
For Cisco, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.85. This represents a change of -25.4% from what the company reported a year ago. Cisco currently has a Zacks Rank of #4 (Sell).
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Radcom (RDCM) Moves 6.4% Higher: Will This Strength Last?
Radcom (RDCM - Free Report) shares ended the last trading session 6.4% higher at $10.24. 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 1.5% gain over the past four weeks.
The increase in share price can attributed to the strength in demand for the company’s AI-powered analytics solutions including the RADCOM ACE product line. Renewal of a multi-year deal with Rakuten Mobile along with an extension of the contract for RADCOM ACE by a U.S. telecom operator in 2024 are tailwinds. In June 2024, the company announced that it had clinched over $45 million in new contracts since the beginning of the year.
RADCOM is also directing its efforts at embedding Generative AI technology across its product portfolio to aid operators in handling their networks more dynamically and effectively. As a part of this endeavor, RDCM has integrated its GenAI applications with Amazon Web Service.
Network operators are exploring next-generation cloud technology as they look to cut down costs amid the 5G rollout. RDCM is ramping up its efforts to boost its portfolio of assurance solutions to capitalize on this opportunity.
In the last reported quarter, revenues of $14.1 million increased 17.5% year over year. For 2024, RDCM has revised the lower end of guidance. It now projects revenues in the band of $57-$60 million compared with $56-$60 million predicted earlier.
This monitoring service for the communications industry is expected to post quarterly earnings of $0.15 per share in its upcoming report, which represents a year-over-year change of +15.4%. Revenues are expected to be $14.1 million, up 14% 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 a member of the Zacks Computer - Networking industry. One other stock in the same industry, Cisco Systems (CSCO - Free Report) , finished the last trading session 0.6% higher at $48.45. CSCO has returned 1.8% over the past month.
For Cisco, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.85. This represents a change of -25.4% from what the company reported a year ago. Cisco currently has a Zacks Rank of #4 (Sell).