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

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The Rubicon Project (RUBI) closed at $10.43 in the latest trading session, marking a +1.07% move from the prior day. This move outpaced the S&P 500's daily gain of 0.73%. At the same time, the Dow added 0.6%, and the tech-heavy Nasdaq gained 1.13%.

Heading into today, shares of the digital ad exchange operator had lost 1.62% over the past month, lagging the Computer and Technology sector's gain of 5.28% and the S&P 500's gain of 2.95% in that time.

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 $0.14 per share. This would mark year-over-year growth of 366.67%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $48.15 million, up 16.22% from the year-ago period.

It is also important to note the recent changes to analyst estimates for RUBI. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. 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. The Zacks Consensus EPS estimate has moved 1.15% higher within the past month. RUBI is currently a Zacks Rank #3 (Hold).

Looking at its valuation, RUBI is holding a Forward P/E ratio of 98.29. Its industry sports an average Forward P/E of 51.26, 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 industry currently has a Zacks Industry Rank of 85, which puts it in the top 34% 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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