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

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In the latest trading session, Magnite (MGNI - Free Report) closed at $33.19, marking a -0.93% move from the previous day. This change lagged the S&P 500's daily gain of 1.13%.

Coming into today, shares of the digital ad exchange operator had gained 2.95% in the past month. In that same time, the Computer and Technology sector gained 4.4%, while the S&P 500 gained 2.39%.

Investors will be hoping for strength from MGNI as it approaches its next earnings release, which is expected to be August 5, 2021. In that report, analysts expect MGNI to post earnings of $0.11 per share. This would mark year-over-year growth of 210%. Meanwhile, our latest consensus estimate is calling for revenue of $95 million, up 124.32% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.57 per share and revenue of $404.4 million. These totals would mark changes of +235.29% and +82.47%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for MGNI. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering 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 #2 (Buy).

Looking at its valuation, MGNI is holding a Forward P/E ratio of 58.77. This represents a discount compared to its industry's average Forward P/E of 61.33.

The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 213, which puts it in the bottom 17% 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.

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