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eGain Corporation (EGAN)

eGain Corporation (EGAN)

The California-based cloud software company uses artificial intelligence to address consumer inquiries, direct operations, and make decisions in its knowledge management software. eGain has over 900 users, mainly in the United States. In April 2021, The Goodyear Tire & Rubber Company chose eGain Corporation’s platform to represent their virtual customer service. Unlike other household-name stocks, EGAN is an affordable AI stock currently hovering at $10.

eGain Corporation has a market cap of $318 million. The company’s total revenue in the first quarter of 2021 came in at $19.2 million. Shares of EGAN jumped 8% over the last twelve months. Last month, Needham analyst Ryan MacDonald maintained a Buy rating on eGain Corporation and set a $12 price target. There were 15 hedge funds reported owning stakes in eGain Corporation at the end of the fourth quarter. 

The total value of these stakes at the end of Q4 is $26 million. While earnings and revenue growth expectations are essential 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 eGain, 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 EGAN going forward to see if this recent jump can turn into more strength down the road.

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