PubMatic, Inc. (PUBM) Soars 5.2%: Is Further Upside Left in the Stock?

PubMatic, Inc. PUBM shares ended the last trading session 5.2% higher at $17.19. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 11.5% gain over the past four weeks.

PubMatic is riding on an expanding clientele and strong partner base. It recently inked a partnership with DISH Media to accelerate programmatic demand for Sling TV.

This company is expected to post quarterly earnings of $0.19 per share in its upcoming report, which represents a year-over-year change of -42.4%. Revenues are expected to be $78.15 million, up 5.2% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For PubMatic, Inc., the consensus EPS estimate for the quarter has been revised 10.2% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on PUBM going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

PubMatic, Inc. belongs to the Zacks Internet - Software industry. Another stock from the same industry, Ziff Davis ZD, closed the last trading session 1.3% lower at $66.79. Over the past month, ZD has returned 1.9%.

For Ziff Davis, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $2.32. This represents a change of +2.7% from what the company reported a year ago. Ziff Davis currently has a Zacks Rank of #3 (Hold).

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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