Magnite (MGNI) Outpaces Stock Market Gains: What You Should Know
Magnite (MGNI) closed at $36.83 in the latest trading session, marking a +0.9% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.23%.
Coming into today, shares of the digital ad exchange operator had gained 22.9% in the past month. In that same time, the Computer and Technology sector gained 5.66%, while the S&P 500 gained 2.34%.
Investors will be hoping for strength from MGNI as it approaches its next earnings release. The company is expected to report EPS of $0.11, up 210% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $95 million, up 124.32% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $0.57 per share and revenue of $404.4 million, which would represent changes of +235.29% and +82.47%, respectively, from the prior year.
Any recent changes to analyst estimates for MGNI should also be noted by investors. 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 230% higher. MGNI is currently sporting a Zacks Rank of #2 (Buy).
Digging into valuation, MGNI currently has a Forward P/E ratio of 64.04. This valuation marks a discount compared to its industry's average Forward P/E of 78.94.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 200, which puts it in the bottom 22% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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