12 Best Advertising Stocks to Buy Now

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9. Stagwell Inc. (NASDAQ:STGW)

Number of Hedge Fund Holders: 20

Stagwell Inc. (NASDAQ:STGW) is a global marketing company specializing in performance media and data, digital transformation, creativity and communications, and consumer insights and strategy. The Brand Performance Network segment encompasses creative media consulting, business-to-business marketing capabilities, and more. The Communications Network, in contrast, covers a network offering strategic corporate communications, advocacy, public relations, investor relations, online fundraising, and other services to political and advocacy organizations and corporations.

Stagwell Inc. (NASDAQ:STGW) also specializes in digital storytelling, multi-cultural marketing, cultural relevance, and influencer integration. Fiscal Q4 2024 marked the continuation of the improving trends exhibited by the company, with revenue growing by 20% and net revenue by 14% in the quarter. This growth was attributed to continued strong momentum in Digital Transformation, which grew revenue by 22% and net revenue by 15% year-over-year. In addition, the company’s Performance Media and Data also performed well, increasing revenue by 12% and net revenue by 16% year-over-year.

Stagwell Inc. (NASDAQ:STGW) is continually investing in the growth of its cloud and AI-based software solutions and has also made strong progress in managing its cost structure, bringing its comp-to-revenue ratio down to 57.5%, a record low for the company. On March 20, it announced plans to increase 2025 ad spend in news by 22% year-over-year. Investors are thus bullish on the stock, and its median price target of $6.18 implies an upside of 53.72% from current levels.

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