Cerence (CRNC) Soars 8.7%: Is Further Upside Left in the Stock?

Cerence CRNC shares rallied 8.7% in the last trading session to close at $35.09. 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 27.1% gain over the past four weeks.

The upswing in Cerence’s share price can be attributed to its expanding clientele. Cerence Ride was recently selected by Chinese OEM Loncin Motors for its high-end motorcycle line to enable AI-powered voice interaction for riders. Cerence JustTalk is also getting integrated into MBUX, Mercedes-Benz AG’s intuitive multimedia system for the new Mercedes-Benz E-Class.

This automotive artificial intelligence developer is expected to post quarterly loss of $0.17 per share in its upcoming report, which represents a year-over-year change of -139.5%. Revenues are expected to be $60.83 million, down 31.7% 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 Cerence, 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 CRNC going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Cerence is a member of the Zacks Computers - IT Services industry. One other stock in the same industry, Wix.com WIX, finished the last trading session 4.6% lower at $85.02. WIX has returned 10.5% over the past month.

Wix.com's consensus EPS estimate for the upcoming report has changed +48.2% over the past month to $0.52. Compared to the company's year-ago EPS, this represents a change of +471.4%. Wix.com currently boasts a Zacks Rank of #2 (Buy).

Free Report Reveals How You Could Profit from the Growing Electric Vehicle Industry

Globally, electric car sales continue their remarkable growth even after breaking records in 2021. High gas prices have fueled his demand, but so has evolving EV comfort, features and technology. So, the fervor for EVs will be around long after gas prices normalize. Not only are manufacturers seeing record-high profits, but producers of EV-related technology are raking in the dough as well. Do you know how to cash in?  If not, we have the perfect report for you – and it’s FREE! Today, don't miss your chance to download Zacks' top 5 stocks for the electric vehicle revolution at no cost and with no obligation.

>>Send me my free report on the top 5 EV stocks

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Cerence Inc. (CRNC) : Free Stock Analysis Report

Wix.com Ltd. (WIX) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

More Related Articles

Info icon

This data feed is not available at this time.

Sign up for Smart Investing to get the latest news, strategies and tips to help you invest smarter.