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The Rubicon Project (RUBI) Stock Sinks As Market Gains: What You Should Know

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The Rubicon Project (RUBI - Free Report) closed the most recent trading day at $10.49, moving -0.29% from the previous trading session. This change lagged the S&P 500's 0.67% gain on the day. Meanwhile, the Dow gained 0.74%, and the Nasdaq, a tech-heavy index, added 0.81%.

Coming into today, shares of the digital ad exchange operator had gained 35.39% in the past month. In that same time, the Computer and Technology sector gained 6.02%, while the S&P 500 gained 3.55%.

Investors will be hoping for strength from RUBI as it approaches its next earnings release. In that report, analysts expect RUBI to post earnings of $0.12 per share. This would mark year-over-year growth of 300%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $47.81 million, up 15.4% from the year-ago period.

Investors might also notice recent changes to analyst estimates for RUBI. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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. The Zacks Consensus EPS estimate remained stagnant within the past month. RUBI is currently sporting a Zacks Rank of #1 (Strong Buy).

Valuation is also important, so investors should note that RUBI has a Forward P/E ratio of 105.2 right now. Its industry sports an average Forward P/E of 55.13, so we one might conclude that RUBI is trading at a premium comparatively.

The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 105, putting it in the top 42% 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.

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


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