Audioeye Shares Rise 521% YTD: How Should You Play the Stock?

Audioeye AEYE shares have gained 520.7% year to date, outperforming the Zacks Computer and Technology sector’s appreciation of 30%. It has also outperformed the Zacks Internet Software industry and its peers like Synchronoss Technologies SNCR, Fortinet INC. FTNT and Aspen Technology AZPN.Over the same time frame, shares of SNCR, FTNT and AZPN have gained 87%, 66% and 12.9%, respectively, while the industry has appreciated 29.8%. AEYE shares’ outperformance can be attributed to strong topline growth and expanding partnerships. For the nine months ended Sept. 30, 2024, revenues increased 8.6% year over to $25.5 million, driven by expanding clientele, Partner and Marketplace, and Enterprise channels. As of Sept. 30, 2024, AEYE’s customers increased 18% year over year to 126K.Audioeye, Inc. Price and Consensus Audioeye, Inc. price-consensus-chart | Audioeye, Inc. QuoteWill AEYE’s Partnership Aid the Top Line?AEYE extended its partnership with CivicPlus, a Saas technology solutions provider in the public sector, to deliver go-to-market efforts to develop accessibility solutions to local government. AEYE aims to leverage its AI automation to aid municipalities and cities with its managed products that provide legal protection for current and potential customers.  Audioeye’s efforts to meet the Justice Department’s new rule pertaining to Title II of Americans with Disabilities Act, outlining rules for web and mobile app accessibility for public sector entities, will enable it to reach CivicPlus’s 10K government clients.The partnership will provide additional benefits, including accessibility monitoring, automated fixes and expert testing to Audioeye’s customers. AEYE also partnered with Finalsite, which caters to 7000 clients in over 115 countries, to develop digital access for K to 12 schools. AEYE aims to penetrate public sector and healthcare industry by providing Ally, a website access software, at a lower rate to educational institutes.AEYE’s Accessibility Protection Status Helps ProspectsAudioeye recently announced Accessibility Protection Status, a benchmark in digital accessibility compliance. It will allow businesses to enhance transparency and control over their digital accessibility operations.AEYE’s Accessibility Protection Status will assist enterprises in analyzing their risk profile and also to minimize it by providing solutions.Audioeye’s platform will be integrated with Accessibility Protection Status and will deliver actionable insights and recommendations to increase protection to about 300% when compared to traditional accessibility consulting and over 400% when compared to automation-specific competitors.AEYE Revises 2024 GuidanceIn the fourth quarter of 2024, AEYE expects to generate revenue between $9.7 million and $9.8 million, adjusted EBITDA between $2.2 million and $2.3 million and adjusted EPS between 18 cents and 19 cents per share.For 2024, Audioeye expects to generate revenues between $35.2 million and $35.3 million, adjusted EBITDA between $6.62 million and $6.72 million and adjusted EPS between 54 cents and 55 cents per share.AEYE’s Near-Term Outlook SteadyThe Zacks Consensus Estimate for fourth-quarter 2024 earnings is currently pegged at 15 cents, unchanged over the past 30 days.  The consensus mark for fourth-quarter 2024 revenues is pegged at $9.54 million, indicating year-over-year growth of 21.11%. For 2024, the Zacks Consensus Estimate for revenues is pegged at $35.17 million, indicating year-over-year growth of 12.31%. The consensus mark for earnings is pegged at 47 cents per share, unchanged over the past 30 days and up 327.27% year over year.The company’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters, delivering an average surprise of 83.57%.Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.AEYE’s Stretched Valuation Concern for InvestorsAEYE shares are currently overvalued, as suggested by a Value Score of F. In terms of the forward 12-month Price/Earnings (P/E) ratio, AEYE is trading at 59.52X, lower than the Zacks Computer and Technology sector’s 27.35X.However, we expect prospects to remain muted, given the intense competition in the digital accessibility market from large technology companies and startups.AEYE currently has a Zacks Rank #3 (Hold), which implies that investors may want to wait for a more favorable entry point. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>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 Synchronoss Technologies, Inc. (SNCR): Free Stock Analysis Report Fortinet, Inc. (FTNT): Free Stock Analysis Report Aspen Technology, Inc. (AZPN): Free Stock Analysis Report Audioeye, Inc. (AEYE): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks