Arteris, Inc. (AIP – Free Report) shares rallied 7% in the last trading session to close at $10.61. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock’s 16.6% gain over the past four weeks.
Arteris is benefiting from strong demand for AI-driven enterprise computing, automotive SoC solutions, and increasing adoption of its technology by top global customers.
This company is expected to post quarterly loss of $0.10 per share in its upcoming report, which represents a year-over-year change of +44.4%. Revenues are expected to be $15.25 million, up 22% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Arteris, 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 AIP 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 >>>>
Arteris is a member of the Zacks Internet – Software industry. One other stock in the same industry, Calix (CALX – Free Report) , finished the last trading session 1% higher at $35.63. CALX has returned 9.8% over the past month.
Calix’s consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.08. Compared to the company’s year-ago EPS, this represents a change of -81.4%. Calix currently boasts a Zacks Rank of #3 (Hold).
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