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Magnite (MGNI) Stock Sinks As Market Gains: What You Should Know

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Magnite (MGNI - Free Report) closed the most recent trading day at $39.50, moving -0.28% from the previous trading session. This move lagged the S&P 500's daily gain of 1.11%.

Prior to today's trading, shares of the digital ad exchange operator had lost 7.33% over the past month. This has lagged the Computer and Technology sector's gain of 8.47% and the S&P 500's gain of 4.72% in that time.

Wall Street will be looking for positivity from MGNI as it approaches its next earnings report date. This is expected to be May 10, 2021. On that day, MGNI is projected to report earnings of $0.02 per share, which would represent year-over-year growth of 133.33%.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.37 per share and revenue of $277.9 million. These totals would mark changes of +117.65% and +25.39%, respectively, from last 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. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. MGNI is holding a Zacks Rank of #3 (Hold) right now.

Valuation is also important, so investors should note that MGNI has a Forward P/E ratio of 113.46 right now. This represents a premium compared to its industry's average Forward P/E of 76.31.

The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 211, putting it in the bottom 17% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

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