SoundThinking (SSTI) Moves 7.2% Higher: Will This Strength Last?

Core Viewpoint - SoundThinking, Inc. (SSTI) shares experienced a significant increase of 7.2% in the last trading session, closing at $7, following a period of 27.1% loss over the past four weeks, indicating a potential turnaround in investor sentiment [1][2]. Group 1: Company Performance - The recent rally in SSTI's stock is primarily attributed to optimism regarding revenue growth from New York City, supported by two three-year contract renewals with the New York City Police Department [2]. - SSTI is projected to report a quarterly loss of $0.12 per share, reflecting a year-over-year improvement of 62.5%, with expected revenues of $24.63 million, marking a 5.2% increase from the same quarter last year [3]. - The consensus EPS estimate for SSTI has remained unchanged over the last 30 days, suggesting that the stock's price movement may not sustain without trends in earnings estimate revisions [4]. Group 2: Industry Context - SSTI operates within the Zacks Security and Safety Services industry, where Alarm.com Holdings (ALRM) also resides, having closed the last trading session up by 3.9% at $48.22, despite a -10.6% return over the past month [4]. - Alarm.com's consensus EPS estimate for its upcoming report has remained stable at $0.66, representing a year-over-year change of 13.8%, and it also holds a Zacks Rank of 3 (Hold) [5].