SoundThinking, Inc. (SSTI) shares soared 14.2% in the last trading session to close at $14.49. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 10.3% loss over the past four weeks.
SoundThinking’s rally is primarily driven by optimism about the growing popularity of its SafetySmart platform. Strong demand for the company’s ShotSpotter solution, growth in customer subscriptions and the acquisition of SafePointe bode well.
This maker of gunfire detection systems is expected to post quarterly loss of $0.09 per share in its upcoming report, which represents a year-over-year change of +67.9%. Revenues are expected to be $25.6 million, up 15.9% 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 SoundThinking, 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 SSTI 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 >>>>
SoundThinking is part of the Zacks Security and Safety Services industry. Johnson Controls (JCI), another stock in the same industry, closed the last trading session 3.1% higher at $72.18. JCI has returned 1% in the past month.
For Johnson Controls
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
