15 Best Advertising Stocks to Buy According to Hedge Funds

5) QuinStreet, Inc. (NASDAQ:QNST)

Number of Hedge Fund Holders: 19

QuinStreet, Inc. (NASDAQ:QNST) is an advertising technology company powering online marketplaces to match searching consumers with brands in large end markets like insurance, home services, credit cards, personal loans, and banking.

Wall Street experts believe that QuinStreet, Inc. (NASDAQ:QNST)’s key vertical, insurance, appears to be back in growth mode. The company’s revenue growth is expected to accelerate from current levels, which can drive solid operating margin expansion and earnings growth. In Q1 2025, the company saw a 125% YoY increase in revenue and significant margin expansion. These results were aided by the broad-based ramp of auto insurance carrier budgets, and by its expanded client, media, and product footprints.

Analysts opine that the insurance “super cycle” is expected to continue as carriers have been reporting strong results overall, and from its channel. QuinStreet, Inc. (NASDAQ:QNST) remains focused on increasing and optimizing media supply to meet surging carrier demand. These efforts should translate into further margin expansion. Experts foresee a strong demand for digital marketing services moving forward, particularly in the insurance industry.

Analysts at Craig Hallum upped their price objective on shares of QuinStreet, Inc. (NASDAQ:QNST) from $25.00 to $32.00, giving a “Buy” rating on 5^th November. Next Century Growth Investors, LLC, an investment Management Company, released its first-quarter 2024 investor letter. Here is what the fund said:

“QuinStreet, Inc. (NASDAQ:QNST) is an advertising technology company that powers online marketplaces to match searching consumers with brands in large end markets such as insurance, home services, credit cards, personal loans, and banking. With one of the largest media networks, QNST allows consumers to find brands faster, while giving the brands measurability of digital media spend. We have owned QNST in the past. Since then, they have streamlined the business by eliminating a few problematic end markets, and their largest vertical, insurance, appears to be back in growth mode. We believe QNST’s revenue growth can accelerate from current levels, which should also drive solid operating margin expansion and earnings growth.”