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AudioEye (AEYE) Stock Falls Amid Market Uptick: What Investors Need to Know

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The latest trading session saw AudioEye (AEYE - Free Report) ending at $22.26, denoting a -1.07% adjustment from its last day's close. This change lagged the S&P 500's 0.13% gain on the day. At the same time, the Dow added 0.55%, and the tech-heavy Nasdaq lost 0.52%.

Shares of the company have appreciated by 0.76% over the course of the past month, underperforming the Computer and Technology sector's gain of 1.56% and the S&P 500's gain of 3.67%.

Analysts and investors alike will be keeping a close eye on the performance of AudioEye in its upcoming earnings disclosure. In that report, analysts expect AudioEye to post earnings of $0.14 per share. This would mark year-over-year growth of 600%. Simultaneously, our latest consensus estimate expects the revenue to be $8.9 million, showing a 13.47% escalation compared to the year-ago quarter.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $0.47 per share and a revenue of $34.65 million, indicating changes of +327.27% and +10.65%, respectively, from the former year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for AudioEye. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Currently, AudioEye is carrying a Zacks Rank of #1 (Strong Buy).

In terms of valuation, AudioEye is presently being traded at a Forward P/E ratio of 48.39. This denotes a premium relative to the industry's average Forward P/E of 30.42.

We can additionally observe that AEYE currently boasts a PEG ratio of 1.94. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As of the close of trade yesterday, the Internet - Software industry held an average PEG ratio of 2.02.

The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 87, putting it in the top 35% 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.

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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