Strength Seen in PubMatic (PUBM): Can Its 6.3% Jump Turn into More Strength?

PubMatic, Inc. PUBM shares soared 6.3% in the last trading session to close at $18.55. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 7.4% gain over the past four weeks.

PubMatic is benefiting from strong adoption of its AI-powered agentic advertising platform, diversification into high-growth channels like CTV and mobile apps, and expanding direct relationships with advertisers and agencies, all driving double-digit revenue growth and improved profitability.

This company is expected to post quarterly earnings of $0.17 per share in its upcoming report, which represents a year-over-year change of +466.7%. Revenues are expected to be $76.03 million, up 11.9% 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, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. 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 #2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

PubMatic belongs to the Zacks Internet - Software industry. Another stock from the same industry, HubSpot HUBS, closed the last trading session 2% lower at $221.56. Over the past month, HUBS has returned -4.7%.

For HubSpot, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $3.28. This represents a change of +23.3% from what the company reported a year ago. HubSpot currently has a Zacks Rank of #3 (Hold).

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This article originally published on Zacks Investment Research (zacks.com).

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