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Magnite (MGNI) Gains But Lags Market: What You Should Know

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In the latest trading session, Magnite (MGNI - Free Report) closed at $40.91, marking a +0.49% move from the previous day. This move lagged the S&P 500's daily gain of 1.66%. Meanwhile, the Dow gained 1.39%, and the Nasdaq, a tech-heavy index, added 1.24%.

Heading into today, shares of the digital ad exchange operator had lost 15.92% over the past month, lagging the Computer and Technology sector's loss of 1.7% and the S&P 500's gain of 1.91% in that time.

Wall Street will be looking for positivity from MGNI as it approaches its next earnings report date. In that report, analysts expect MGNI to post earnings of $0.02 per share. This would mark year-over-year growth of 133.33%.

MGNI's full-year Zacks Consensus Estimates are calling for earnings of $0.37 per share and revenue of $277.9 million. These results would represent year-over-year changes of +117.65% and +25.39%, respectively.

Investors should also note any recent changes to analyst estimates for MGNI. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 150% higher. MGNI is currently a Zacks Rank #3 (Hold).

Digging into valuation, MGNI currently has a Forward P/E ratio of 110.03. For comparison, its industry has an average Forward P/E of 61.49, which means MGNI is trading at a premium to the group.

The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 181, which puts it in the bottom 30% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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