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Magnite (MGNI) Dips More Than Broader Markets: What You Should Know

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In the latest trading session, Magnite (MGNI - Free Report) closed at $29.18, marking a -0.98% move from the previous day. This change lagged the S&P 500's 0.91% loss on the day.

Prior to today's trading, shares of the digital ad exchange operator had gained 21.28% over the past month. This has outpaced the Computer and Technology sector's gain of 2.86% and the S&P 500's gain of 0.01% in that time.

MGNI will be looking to display strength as it nears its next earnings release. On that day, MGNI is projected to report earnings of $0.15 per share, which would represent year-over-year growth of 150%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $114 million, up 86.95% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $0.55 per share and revenue of $417.5 million, which would represent changes of +223.53% and +88.38%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for MGNI. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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.

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 has moved 6.06% lower. MGNI is currently sporting a Zacks Rank of #4 (Sell).

Digging into valuation, MGNI currently has a Forward P/E ratio of 53.58. This represents a discount compared to its industry's average Forward P/E of 59.87.

The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 205, putting it in the bottom 20% 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.

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


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