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

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Magnite (MGNI - Free Report) closed at $36.32 in the latest trading session, marking a +0.58% move from the prior day. This move outpaced the S&P 500's daily loss of 0.92%.

Heading into today, shares of the digital ad exchange operator had lost 24.56% over the past month, lagging the Computer and Technology sector's gain of 9.54% and the S&P 500's gain of 6.83% in that time.

Investors will be hoping for strength from MGNI as it approaches its next earnings release, which 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%.

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.

Any recent changes to analyst estimates for MGNI should also be noted by investors. These revisions help to show the ever-changing nature of 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. 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.

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. Within the past 30 days, our consensus EPS projection remained stagnant. MGNI is currently a Zacks Rank #3 (Hold).

Valuation is also important, so investors should note that MGNI has a Forward P/E ratio of 94.97 right now. For comparison, its industry has an average Forward P/E of 75.37, which means MGNI is trading at a premium to the group.

The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 189, putting it in the bottom 26% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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