Radcom (RDCM) Surges 10.5%: Is This an Indication of Further Gains?

Radcom (RDCM) shares rallied 10.5% in the last trading session to close at $13.38. 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 1.7% gain over the past four weeks.The increase in share price can be attributed to healthy demand for its cutting-edge 5G assurance solutions, infused with artificial intelligence (AI) capabilities. The strength in demand for its RADCOM ACE platform is prominent across North America and Europe. RADCOM’s buyout of Continual in May 2023 has further strengthened its service assurance portfolio and resulted in a seven-figure, multi-year deal with a North American operator for RADCOM’s enhanced mobility experience analytics solution during the third quarter. The company recorded a 20% year-over-year growth reaching $15.8 million in the third quarter. Driven by healthy momentum, the company has raised its revenue guidance for the full-year 2024 to $59-$62 million, up from the prior view of $58-$61 million. Riding on strong relationships with strategic customers like AT&T, DISH and Rakuten Mobile, and a focus on automated, cloud-based solutions, Radcom is well-positioned for continued growth, market share expansion and increased profitability heading into 2025.This monitoring service for the communications industry is expected to post quarterly earnings of $0.19 per share in its upcoming report, which represents a year-over-year change of -24%. Revenues are expected to be $15.4 million, up 9.9% 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 Radcom, 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 RDCM 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 >>>>Radcom is part of the Zacks Computer - Networking industry. NetScout Systems (NTCT), another stock in the same industry, closed the last trading session 2% lower at $21.32. NTCT has returned -5.8% in the past month.NetScout's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.74. Compared to the company's year-ago EPS, this represents a change of +1.4%. NetScout currently boasts a Zacks Rank of #3 (Hold).7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.1% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>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 Radcom Ltd. (RDCM): Free Stock Analysis Report NetScout Systems, Inc. (NTCT): 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