The latest value percentile report highlights notable week-on-week improvements in value rankings for three prominent Communication Services stocks.What Does Value Ranking Mean?Value rankings, according to Benzinga Edge’s Stock Ranking, compare a stock's current market valuation with its peers based on fundamental business metrics such as assets, earnings, sales, and operating performance.A rising percentile score typically signals the market's growing confidence in a stock's underlying value proposition.3 ...

Core Viewpoint - A class action lawsuit has been filed against DoubleVerify Holdings, Inc. for allegedly misleading investors regarding the company's performance and competitive position during the class period from November 10, 2023, to February 27, 2025 [1][3]. Company Overview - DoubleVerify Holdings, Inc. provides media effectiveness platforms aimed at optimizing digital ad performance for advertisers [2]. Allegations of the Lawsuit - The lawsuit claims that DoubleVerify made false or misleading statements and failed to disclose critical information, including: - Customers were shifting ad spending from open exchanges to closed platforms, where DoubleVerify's capabilities were limited and faced competition from platforms like Meta and Amazon [3]. - The development of technology for closed platforms was more costly and time-consuming than represented [3]. - Monetization of Activation Services on closed platforms would take several years, contrary to prior suggestions [3]. - Competitors were better positioned to implement AI solutions on closed platforms, affecting DoubleVerify's competitiveness [3]. - The company overbilled customers for ad impressions served to known bots [3]. - Risk disclosures were misleading, presenting ongoing issues as hypothetical risks [3]. Impact on Stock Price - A series of corrective disclosures negatively impacted DoubleVerify's stock price: - On February 28, 2024, the company issued lower-than-expected Q1 2024 revenue growth guidance, leading to a stock drop of over 21% [4]. - On May 7, 2024, DoubleVerify cut its full-year 2024 revenue outlook due to reduced ad spending, resulting in a nearly 39% decline in stock price [5]. - On February 27, 2025, disappointing Q4 2024 earnings revealed the negative impact of the shift to closed platforms, causing shares to fall more than 36% [5].

Core Insights - DoubleVerify Holdings (DV) reported revenue of $165.06 million for the quarter ended March 2025, reflecting a year-over-year increase of 17.3% [1] - The earnings per share (EPS) for the quarter was $0.01, down from $0.04 in the same quarter last year, indicating a decline [1] - The reported revenue exceeded the Zacks Consensus Estimate of $152.96 million by 7.91%, while the EPS fell short of the consensus estimate of $0.02 by 50% [1] Revenue Breakdown - Revenue from Measurement customers was $53.43 million, slightly above the estimated $52.86 million, marking an 8.4% increase year-over-year [4] - Revenue from Supply-side customers reached $16.46 million, surpassing the estimated $15.16 million, representing a significant 35.1% increase compared to the previous year [4] - Revenue from Activation services was $95.17 million, exceeding the average estimate of $84.89 million, with a year-over-year growth of 20% [4] Stock Performance - Over the past month, DoubleVerify's shares have returned +1.3%, underperforming the Zacks S&P 500 composite, which saw a +11.3% change [3] - The stock currently holds a Zacks Rank 4 (Sell), suggesting potential underperformance relative to the broader market in the near term [3]