15 Best Advertising Stocks to Buy According to Hedge Funds

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7) National CineMedia, Inc. (NASDAQ:NCMI)

Number of Hedge Fund Holders: 16

National CineMedia, Inc. (NASDAQ:NCMI), through its subsidiary, National CineMedia, LLC, operates a cinema advertising network in North America. It is engaged in the sale of advertising to national, regional, and local businesses.

National CineMedia, Inc. (NASDAQ:NCMI), known for its in-theater advertising, continues to gain recognition for its potential in the recovering domestic box office market. The company’s strategic positioning and appeal to younger demographics i.e., Gen Z and millennials should enhance digital advertising revenue throughout its network. National CineMedia, Inc. (NASDAQ:NCMI)’s ability to capitalize on the resurgence of cinema-going and leverage advertising platform to reach the targeted segment supports its favorable outlook.

In Q3 2024, National CineMedia, Inc. (NASDAQ:NCMI)’s advertising revenue from new sectors like tech, retail, and pharma saw strong growth, with tech up over 10 times. This reflects how the company’s diverse portfolio of offerings appeals to a broad range of brands whether through its continued strong performance in top verticals (wireless and automotive) or engagement with newer categories (pharma). Furthermore, category diversification helps National CineMedia, Inc. (NASDAQ:NCMI) reduce its sensitivity to market volatility. This ensures a more stable and resilient revenue stream across different economic conditions.

National CineMedia, Inc. (NASDAQ:NCMI)’s newly introduced retargeting platforms, Boomerang and Boost, have shown healthy incremental value to advertisers. Boomerang increased post-theater engagement by 20% with 15 deals to date (5th November 2024), and Boost expanded audience reach by 3x across premium video channels.

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