Alarm.com Holdings, Inc. ALRM shares rallied 5.2% in the last trading session to close at $46.34. 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 0.1% loss over the past four weeks.
Alarm.com’s rally is largely driven by optimism over strong momentum in the software as a service and license businesses. Also, the company’s expansion into advanced AI-powered solutions and a favorable product mix also bode well.
This security service company is expected to post quarterly earnings of $0.64 per share in its upcoming report, which represents a year-over-year change of +6.7%. Revenues are expected to be $264.83 million, up 4.1% 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 Alarm.com, 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 ALRM 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 >>>>
Alarm.com is a member of the Zacks Security and Safety Services industry. One other stock in the same industry, MSA Safety MSA, finished the last trading session 1.7% higher at $170.46. MSA has returned -1.5% over the past month.
For MSA Safety, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $2.14. This represents a change of +10.9% from what the company reported a year ago. MSA Safety currently has a Zacks Rank of #2 (Buy).
Beyond Nvidia: AI's Second Wave Is Here
The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.
See Stocks Now >>Alarm.com Holdings, Inc. (ALRM) : Free Stock Analysis Report
MSA Safety Incorporporated (MSA) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
