PubMatic (PUBM) Moves 9.9% Higher: Will This Strength Last?

PubMatic, Inc. PUBM shares soared 9.9% in the last trading session to close at $12.65. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 0.6% gain over the past four weeks.PubMatic's rally appears supported by strong fundamentals. The company delivered better-than-expected first-quarter results, driven by accelerating adoption of AI-powered AgenticOS, rapid growth in CTV, mobile app and emerging revenues, expanding DSP diversification, and management's expectation of returning to double-digit revenue growth with margin expansion in the second half.This company is expected to post quarterly earnings of $0.03 per share in its upcoming report, which represents a year-over-year change of -40%. Revenues are expected to be $69.1 million, down 2.8% 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, Clear Secure YOU, closed the last trading session 3.7% higher at $55.17. Over the past month, YOU has returned -6.2%.For Clear Secure, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.43. This represents a change of +65.4% from what the company reported a year ago. Clear Secure currently has a Zacks Rank of #2 (Buy).Beyond Nvidia: AI's Second Wave Is HereThe AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.See Stocks Now >>This article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks