10 Best Advertising Stocks to Buy According to Short Sellers

7. Pegasystems Inc. (NASDAQ:PEGA)

Short Interest as % of  Shares Outstanding: 1.37%

Number of Hedge Fund Investors In Q2 2024: 27

Pegasystems Inc. (NASDAQ:PEGA) is an enterprise support software company that allows businesses to acquire customers and manage customer experiences. When compared to some other advertising stocks on our list, it is a relatively smaller company despite having been set up in 1983, and as is characteristic with high growth cloud stocks, Pegasystems Inc. (NASDAQ:PEGA) is only sporadically profitable. This means that investors are hyper focused on its revenue growth and margins, with the share price contingent on these two metrics. As a smaller company, Pegasystems Inc. (NASDAQ:PEGA) can benefit from quickly shifting its strategies to meet emerging trends, and it appears to be doing so with its Blueprint platform. Blueprint allows Pegasystems Inc. (NASDAQ:PEGA)’s customers to use AI to generate different digital transformation strategies, and it sets its enterprise software apart from customers who are primarily focused on enabling businesses to write code and generate software.

Pegasystems Inc. (NASDAQ:PEGA)’s management shared key details for Blueprint during the Q2 2024 earnings call:

“Client discussions I’ve had since launch of Blueprint are some of the most positive I’ve had in the Pega 40-year history.

In fact, when our clients see what we delivered they quickly recognized for power and the opportunities. I believe that the energy and confidence in our vision is increasing — and is helping to drive the kind of results we’re talking about today. With tens of thousands of Pega Blueprints created over the last few months, we’re identifying opportunities to accelerate growth and creating additional momentum for Pega Cloud, which will contribute to monetization. And we’ve barely scratched the surface of what we, our clients, and our partners can do with this game-changing technology, and we’re really energized by this. I do believe that Blueprint is fundamentally changing how we engage, sell and deliver with our clients.”