AudioEye (AEYE) Sees a More Significant Dip Than Broader Market: Some Facts to Know

Zacks03-20

In the latest market close, AudioEye (AEYE) reached $11.49, with a -1.79% movement compared to the previous day. This change lagged the S&P 500's daily loss of 0.22%. At the same time, the Dow lost 0.03%, and the tech-heavy Nasdaq lost 0.33%.

The company's shares have seen a decrease of 28.79% over the last month, not keeping up with the Computer and Technology sector's loss of 12% and the S&P 500's loss of 7.48%.

The investment community will be paying close attention to the earnings performance of AudioEye in its upcoming release. The company's earnings per share (EPS) are projected to be $0.15, reflecting an 87.5% increase from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $9.7 million, showing a 20.05% escalation compared to the year-ago quarter.

For the full year, the Zacks Consensus Estimates project earnings of $0.70 per share and a revenue of $41.64 million, demonstrating changes of +27.27% and +18.29%, respectively, from the preceding year.

Investors might also notice recent changes to analyst estimates for AudioEye. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

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 3.33% lower within the past month. At present, AudioEye boasts a Zacks Rank of #5 (Strong Sell).

Valuation is also important, so investors should note that AudioEye has a Forward P/E ratio of 16.71 right now. For comparison, its industry has an average Forward P/E of 27.92, which means AudioEye is trading at a discount to the group.

We can additionally observe that AEYE currently boasts a PEG ratio of 0.67. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. By the end of yesterday's trading, the Internet - Software industry had an average PEG ratio of 2.06.

The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 84, which puts it in the top 34% 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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Audioeye, Inc. (AEYE) : Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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