In this article, we will discuss the 15 Best Advertising Stocks to Buy According to Hedge Funds.
Ad spending in 2024 received a significant boost from recurring events such as the US election and the Olympics, and experts believe that these spending patterns are likely to add billions to the market. Media agency Magna increased its US ad spending forecast for the year, expecting revenue growth of 11.4% to $377 billion, per the news shared with Marketing Dive. The company expects non-cyclical ad spending to grow by 8.9%, reflecting a rise from 8.2% in previous forecasts. This marks one of the best performances for the category in 20 years. This revision stemmed from improved macroeconomic conditions, healthy appetites in digital and streaming, and cyclical events, such as the elections and the Summer Olympics.
Advertising To Top US$1 trillion in 2026, Says PwC
As per PwC, fueling revenue growth by selling E&M products directly to users is challenging. Of the 3 major categories i.e., consumer spending, connectivity, and advertising, consumer spending is the smallest and slowest growing. The connectivity category i.e., fixed and mobile services, topped US$1.1 trillion in 2023. Advertising outpaced consumer spending in 2023 and should top US$1 trillion in 2026. PwC believes that it is expected to grow at a 6.7% CAGR through 2028.
With advertising expected to make up ~55% of total E&M industry growth over the upcoming 5 years, PwC believes that it will become a more important part of companies’ business models. For strategic reasons, all participants in the E&M industry are required to be more skillful at selling ads.
According to PwC, the changes to the way businesses approach the ad business are expected to be seen in 3 key areas. Firstly, the monetization of data is expected to fuel more sophisticated advertising models. Next, the connection will be closer between the discovery of products and services and their purchase and consumption. Finally, it will be important for companies to understand how global privacy regulations impact growth.
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Trends To Watch Out for in 2025
As per Mediatool, key advertising trends to look out for include an emphasis on authenticity, visual content domination, integration of AI, mobile-centric campaigns, and growth of social commerce. AI/ML has become important in the world of digital advertising. As of now, 32% of marketers leverage AI for creating, managing, and optimizing their ads. According to Market.us, the global AI in advertising market is expected to reach $28.4 billion in the year 2033 with a CAGR of 28.4%. This was valued at $6.7 billion in the year 2023. Based on the application, targeted advertising dominated the broader market with a share of 31.1% in 2023.
With the expectations of strong growth, let us now have a look at the 15 Best Advertising Stocks to Buy According to Hedge Funds.
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Our Methodology
To list the 15 Best Advertising Stocks to Buy According to Hedge Funds, we used a screener and sifted through several online rankings. After getting the initial list of 25-28 stocks, we selected the ones having high hedge fund holdings. Finally, the stocks were ranked in ascending order of their hedge fund sentiment, as of Q3 2024.
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15) Thumzup Media Corporation (NASDAQ:TZUP)
Number of Hedge Fund Holders: N/A
Thumzup Media Corporation (NASDAQ:TZUP) specializes in social media branding and programmatic marketing solutions.
Thumzup Media Corporation (NASDAQ:TZUP) has announced its plans to collaborate with X Corp. (formerly Twitter) to integrate its advertising technology platform. The partnership will utilize X Corp.’s extensive user base to expand Thumzup Media Corporation (NASDAQ:TZUP)’s reach and influence in digital advertising. The integration, which is anticipated to be completed by the end of January 2025, is a strategic move by Thumzup Media Corporation (NASDAQ:TZUP) to capitalize on the growing global digital advertising market, which is expected to grow at a CAGR of 15.5% from 2023 to 2030 (as per Grand View Research). The market was valued at US$365.37 billion in 2022.
Thumzup Media Corporation (NASDAQ:TZUP)’s platform provides unified campaign management and enhanced audience targeting. The company now plans to expand its services to additional social media networks. Given X Corp.’s more open nature, Thumzup Media Corporation (NASDAQ:TZUP) plans to explore new advertising content types and strategies. This will help increase innovation and audience engagement.
Apart from this integration, Wall Street analysts remain optimistic about the company’s ad-tech platform, which has now attracted more than 500 advertisers. This demonstrates a strong 202% growth since the beginning of the year. Since 1st January 2024, Thumzup Media Corporation (NASDAQ:TZUP) has grown from 183 advertisers to 554 as of October 31, 2024, highlighting the platform’s strong appeal throughout different business sectors. As per Wall Street, the shares of Thumzup Media Corporation (NASDAQ:TZUP) have an average price target of $7.10.
14) Fluent, Inc. (NASDAQ:FLNT)
Number of Hedge Fund Holders: 1
Fluent, Inc. (NASDAQ:FLNT) offers data-driven digital marketing services in the US and internationally. The company’s Commerce Media Solutions focuses on enhancing digital advertising through the use of first-party data. Commerce Media Solutions has grown significantly, posting a 341% YoY revenue increase in Q3 2024 and now makes up 16% of Fluent, Inc. (NASDAQ:FLNT)’s total revenue. Its services cater to high-volume verticals including retail, quick-service restaurants, and ticketing, providing advertisers with tools to enhance digital media investments.
Wall Street analysts opine that Fluent, Inc. (NASDAQ:FLNT)’s strategic pivot towards Commerce Media Solutions exhibits the growing importance of this market, which is projected to account for more than 25% of digital ad spending by 2026 (as per BCG estimates). The company’s solutions have been designed to enhance customer acquisition and partner monetization, providing differentiated offerings in the digital advertising landscape.
Fluent, Inc. (NASDAQ:FLNT) also remains optimistic about the introduction of a new Loyalty Solution. The new Loyalty Solution integrates advanced retail media strategies with a focus on enhancing customer engagement and retention. This solution emphasizes delivering personalized, post-purchase offers based on consumer behavior and preferences. As per Wall Street analysts, the shares of the company have an average price target of $4.00.
13) iClick Interactive Asia Group Limited (NASDAQ:ICLK)
Number of Hedge Fund Holders: 1
iClick Interactive Asia Group Limited (NASDAQ:ICLK) is a data-driven digital marketing and enterprise solutions provider. It focuses on connecting global brands with Chinese audiences. The company’s services include solutions for digital advertising, customer relationship management, and data analytics.
A series of favorable developments led to a significant increase of more than 350% over the past 6 months in iClick Interactive Asia Group Limited (NASDAQ:ICLK)’s stock price. To begin with, the company announced a merger with Amber Group’s digital wealth management subsidiary, Amber DWM. This deal valued Amber DWM at $360 million. Wall Street believes that this strategic move should enhance iClick Interactive Asia Group Limited (NASDAQ:ICLK)’s market presence and diversify its offerings, creating new growth opportunities.
Next, the sale of its mainland China demand-side marketing solutions business is expected to create long-term opportunities for iClick Interactive Asia Group Limited (NASDAQ:ICLK). This strategic disposal allows the company to focus on higher-margin, lower-risk operations, which has reassured investors about a streamlined and strategic business focus.
The strategic move is expected to enhance iClick Interactive Asia Group Limited (NASDAQ:ICLK)’s liquidity and profitability by focusing on more efficient areas. Furthermore, the company remains committed to repaying outstanding loans, totaling ~US$35 million, previously extended by 3 banks to the disposed business. This repayment is expected to take place within 6 months of the agreement’s execution.
12) WPP plc (NYSE:WPP)
Number of Hedge Fund Holders: 4
WPP plc (NYSE:WPP) operates as a communications services group. It offers operations spanning advertising, media investment management, consultancy, public relations, healthcare and specialist communications, and branding and identity services. WPP plc (NYSE:WPP) secured significant new business wins and was able to maintain its full-year guidance for like-for-like net sales and margin improvement. The company won Amazon’s media account outside the Americas and has also expanded its relationship with Unilever. WPP plc (NYSE:WPP)’s recent win of Amazon’s media account for the APAC and EMEA regions was a significant development.
Given that Amazon’s global advertising spending is immense, WPP plc (NYSE:WPP) now boasts one of the most lucrative media accounts in the industry. The account includes a variety of media planning and buying activities, which were earlier handled by IPG Mediabrands. By managing a significant portion of Amazon’s regional media planning and execution, WPP plc (NYSE:WPP) will be able to boost its revenue streams and demonstrate expertise in handling complex, high-value global accounts.
As per Ad Age, Amazon reported worldwide advertising and other promotional costs of $20.3 billion in 2023. Managing even a portion of this spending for the APAC and EMEA regions will result in substantial billing for WPP plc (NYSE:WPP). Furthermore, with the company handling media planning, buying, and campaign execution for Amazon in these key regions, it will gain revenue from both service fees and commissions on media purchases.
11) Townsquare Media, Inc. (NYSE:TSQ)
Number of Hedge Fund Holders: 7
Townsquare Media, Inc. (NYSE:TSQ) operates as a digital media and marketing solutions company for small and medium-sized businesses. Townsquare Media, Inc. (NYSE:TSQ) expects Q4 2024 growth to be at least as strong as Q3 2024, despite an expected decline in national broadcast advertising. On the other hand, digital advertising grew by 5% YoY and programmatic advertising by 10% YoY in Q3 2024. Townsquare Media, Inc. (NYSE:TSQ) continues to prepare itself for debt refinancing in early 2025, which should bring favorable interest rate shifts.
The company has partnered with SummitMedia to white-label digital programmatic advertising solutions, which is expected to ramp up in 2025. The collaboration is expected to leverage Townsquare Media, Inc. (NYSE:TSQ)’s expertise to enhance SummitMedia’s digital offerings throughout its 9 US markets. Townsquare’s Ignite division will share its in-house digital advertising solutions with SummitMedia. While no material revenue contribution from the collaboration was seen in Q3, Townsquare Media, Inc. (NYSE:TSQ) expects a slight contribution of a few hundred thousand dollars in Q4 2024. On the other hand, costs are mainly personnel-related.
Market experts believe that SummitMedia will establish a new digital arm, Summit Interactive, integrating Townsquare Media, Inc. (NYSE:TSQ)’s proprietary programmatic advertising technologies and data-driven insights. Barrington Research reissued an “Outperform” rating and set a price target of $17.00 on 7th November.
10) Innovid Corp. (NYSE:CTV)
Number of Hedge Fund Holders: 11
Innovid Corp. (NYSE:CTV) is a technology company that delivers video advertising solutions. It provides a cloud-based platform to create, deliver, and measure video ads across various digital channels.
Innovid Corp. (NYSE:CTV)’s long-term revenue growth strategy centers around capturing a share of the traditional linear TV budgets transitioning to CTV and expanding its product offerings to cater to the evolving needs of advertisers. One critical element of the company’s strategy is its Harmony Initiative, rolled out in April 2024. This suite of products, which consists of Harmony Frequency, targets to enhance CTV ad spend efficiency and performance.
This initiative leverages Innovid Corp. (NYSE:CTV)’s unique position as an independent ad server, enabling it to provide differentiated products that address specific needs in the CTV advertising ecosystem. Wall Street analysts believe that the Harmony Initiative will be a potential catalyst for accelerating Innovid Corp. (NYSE:CTV)’s revenue growth towards its long-term target of more than 20%.
Innovid Corp. (NYSE:CTV)’s ability to roll out such products stems from its comprehensive view of advertiser impressions throughout various platforms, a competitive advantage setting the company apart in the sector. Furthermore, introducing ad-supported tiers by major streaming platforms, like Amazon Prime Video, should contribute to an expansion of CTV inventory. This represents a substantial opportunity for growth. With live sports content moving to streaming services, Innovid Corp. (NYSE:CTV) will gain from increased demand for advanced advertising solutions in this high-value segment.
9) Cardlytics, Inc. (NASDAQ:CDLX)
Number of Hedge Fund Holders: 12
Cardlytics, Inc. (NASDAQ:CDLX) is a financial technology (fintech) company that specializes in advertising and marketing solutions in banking and financial platforms.
Cardlytics, Inc. (NASDAQ:CDLX) is transitioning to engagement-based pricing, with 84% of new advertisers choosing this model, which is expected to optimize campaign performance and provide faster feedback. The company’s engagement-based pricing model is a revenue model in which the company charges advertisers based on specific consumer actions that indicate engagement with an advertisement or offer. Therefore, this model focuses on aligning costs with actual user activity and performance. It will ensure that advertisers pay for measurable results rather than just impressions or clicks.
Cardlytics, Inc. (NASDAQ:CDLX) expects the majority of its advertisers to transition to engagement-based pricing by next year’s end. This will help the company optimize campaign performance through faster engagement-based feedback. The engagement-based pricing model is expected to strengthen Cardlytics, Inc. (NASDAQ:CDLX)’s market position, giving them a strong foundation for future growth.
The company expects improved financial performance and results in Q4 2024 due to plans to roll out new partnerships with financial institutions. For example, the major deal with American Express is expected to fuel revenue by 30%. However, this impact is expected mostly in 2025 and Q4 2024 earnings have started showing some signs of renewed growth.
8) Stagwell Inc. (NASDAQ:STGW)
Number of Hedge Fund Holders: 15
Stagwell Inc. (NASDAQ:STGW) is a digital-first marketing and advertising company focused on delivering comprehensive solutions for modern brands.
Wall Street experts believe that Stagwell Inc. (NASDAQ:STGW) continues to push growth by leveraging AI and digital solutions via key acquisitions, such as BERA.AI and LEADERS. With AI reshaping industries, the company appears to be well-placed to capitalize on this trend. Stagwell Inc. (NASDAQ:STGW) focuses on leveraging technology and creativity to cater to clients’ evolving needs amidst heightened competition.
The company’s focus on AI was demonstrated in its Q3 2024 results also. Its digital transformation revenue saw a strong growth of 14.5% YoY, courtesy of AI projects and added partnerships with tech giants. It secured major clients such as Adobe and GM, with revenue expected to materialize in 2025. Stagwell Inc. (NASDAQ:STGW) continues to implement strategic initiatives i.e., the launch of Stagwell ID Graph and the development of Machine AI content platform.
Given the company’s clear focus on digital transformation and expansion into government services, it is well-placed for continued success. Stagwell Inc. (NASDAQ:STGW)’s revenue growth outlook stems from its strategic moves, including the launch of innovative platforms and deals with major clients. Analysts at Rosenblatt Securities increased their price objective on the shares of Stagwell Inc. (NASDAQ:STGW) from $8.00 to $9.00, giving a “Buy” rating on 18th November.
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.
6) Ziff Davis, Inc. (NASDAQ:ZD)
Number of Hedge Fund Holders: 19
Ziff Davis, Inc. (NASDAQ:ZD) offers computing and internet-related technology media, and marketing services. Ziff Davis, Inc. (NASDAQ:ZD)’s stock faced pressures due to missed earnings and evidence of slowing business in June. Much of the weakness came from its business-to-business tech advertising unit and its subscription business.
However, Ziff Davis, Inc. (NASDAQ:ZD) continues to navigate a challenging landscape in the tech advertising market by pursuing growth with the help of strategic acquisitions and cost management. The acquisition of CNET forms the base of this strategy, with Ziff Davis, Inc. (NASDAQ:ZD) expecting it to support its business in the latter half of 2024. Analysts believe that this acquisition is expected to act as a growth catalyst for the company’s digital advertising narrative.
While the tech advertising market has been facing pressures, Ziff Davis, Inc. (NASDAQ:ZD)’s management remains focused on a long-term strategy to consolidate budgets in this space. The company reiterated its full-year guidance for 2024 and expects additional Q4 revenue from CNET and seasonal strength. CNET brings a strong brand and established presence in the digital media space, which is expected to further enhance Ziff Davis, Inc. (NASDAQ:ZD)’s market position and advertising capabilities.
Meridian Funds, managed by ArrowMark Partners, released its third-quarter 2024 investor letter. Here is what the fund said:
“Ziff Davis, Inc. (NASDAQ:ZD) operates a leading internet and software services company through two segments: business cloud services and digital media. The stock fell in the quarter on missed earnings and evidence of slowing business in June, reversing some of the stabilization and positive momentum reported in the prior quarter. The company cited pockets of weakness in its business-to-business tech advertising unit, and its subscription business came in below expectations, largely on shifting sales bookings that impacted the timing of sales, making comparisons difficult.
On a positive note, Ziff Davis announced the acquisition of CNET, a significant media asset in technology and consumer electronics. Ziff-Davis is well-known for its ability to acquire assets and create long-term value. Selling at an attractive valuation we believe growth could reaccelerate, especially with further accretive acquisitions, and modestly trimmed our position during the period.”
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 5th 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.”
4) Magnite, Inc. (NASDAQ:MGNI)
Number of Hedge Fund Holders: 20
Magnite, Inc. (NASDAQ:MGNI) operates an independent omni-channel sell-side advertising platform in the US and internationally.
Magnite, Inc. (NASDAQ:MGNI)’s focus on emerging advertising formats should fuel revenue growth by expanding its market presence and meeting the diverse needs of advertisers and publishers. The company continues to invest in formats such as digital out-of-home (DOOH), audio, podcasts, and native ads. These emerging formats support advertisers looking to engage consumers in non-traditional and innovative ways. This broadens Magnite, Inc. (NASDAQ:MGNI)’s revenue streams.
The emerging formats enable the company to adapt to industry changes, like reduced third-party data availability because of privacy regulations. Formats such as podcasts and DOOH are dependent on contextual targeting and first-party data, aligning with Magnite, Inc. (NASDAQ:MGNI)’s expertise in audience curation. The DOOH advertising market continues to expand at a rapid pace as digital screens proliferate in public spaces including malls, transit hubs, and outdoor billboards.
The global DOOH advertising market was valued at US$24.32 billion in 2023 and should reach US$74.23 billion by 2032 (as per Straits Research). By entering this market, Magnite, Inc. (NASDAQ:MGNI) can tap into new revenue streams and cater to advertisers seeking large-scale visibility.
Choice Equities Capital Management recently released its third-quarter 2024 investor letter. Here is what the fund said:
“Magnite, Inc. (NASDAQ:MGNI) and CROX – Magnite, Inc. and Croc’s Inc. remain holdings in the portfolio and were recently discussed in detail on the Yet Another Value Blog podcast, which can be found here: YAVB podcast. As discussed herein, both remain well-positioned in their respective industries and represent attractive values on anticipated cash flows in years to come. Magnite, as highlighted, looks attractive on its own merits, though shares could become particularly interesting should a handful of industry anti-trust events break their way.”
3) Criteo S.A. (NASDAQ:CRTO)
Number of Hedge Fund Holders: 21
Criteo S.A. (NASDAQ:CRTO) offers marketing and monetization services on the open Internet in North and South America and internationally.
The company’s platform allows retailers to monetize their digital properties effectively while giving advertisers access to valuable consumer data and targeting capabilities. Wall Street analysts believe that Criteo S.A. (NASDAQ:CRTO)’s unique dataset and capabilities are expected to drive future growth. The company’s vast dataset, including insights from over $950 billion in annual e-commerce sales, offers a significant competitive advantage in the digital advertising space. This rich data repository allows Criteo S.A. (NASDAQ:CRTO) to provide highly targeted and effective advertising solutions, potentially resulting in increased returns on investment for its clients.
The company’s AI-driven tools and deep targeting experience further improve its ability to leverage this dataset effectively. With the evolution of privacy regulations and phasing out of third-party cookies, Criteo S.A. (NASDAQ:CRTO)’s first-party data and advanced targeting capabilities should become increasingly valuable to advertisers who seek effective ways to reach their target audiences.
As per Wall Street, Criteo S.A. (NASDAQ:CRTO)’s unique dataset and nascent opportunities in social media advertising are expected to act as positive drivers for future growth.
ClearBridge Investments, an investment management company, released its Q2 2024 investor letter. Here is what the fund said:
“New positions in the quarter were from a variety of sectors. Criteo S.A. (NASDAQ:CRTO), in the communication services sector, provides digital advertising technologies that help drive clients’ e-commerce businesses. While the company was previously reliant on third-party cookies to help optimize its products, management has spent the past five years pivoting away from this technology and focusing on building a leading presence in the burgeoning retail media space. We believe this transformation has reached a tipping point, and that the inherent growth opportunities in this new end market represent a higher growth rate then is currently reflected in the company’s valuation.”
2) The Interpublic Group of Companies, Inc. (NYSE:IPG)
Number of Hedge Fund Holders: 25
The Interpublic Group of Companies, Inc. (NYSE:IPG) offers advertising and marketing services.
The Interpublic Group of Companies, Inc. (NYSE:IPG)’s stock has been on analysts’ radar as they believe that the impact of significant account losses might weigh on the company’s future performance. The account losses, which include the loss of Amazon’s media account, might create a headwind on revenue and margins. Furthermore, losses of creative revenues from Pfizer and GM are likely to impact the company’s 2025 performance.
However, industry experts opine that The Interpublic Group of Companies, Inc. (NYSE:IPG) is now well-placed to turn tides and might now witness a revival. This is because of its focus on several strategic initiatives targeting to improve its competitive position and fuel future growth. The company continues to emphasize key areas like Retail Media, Data, Generative AI (GenAI), mergers and acquisitions (M&A), and production improvements.
The retail media sector continues to rapidly expand, with retailers developing their own advertising platforms, providing The Interpublic Group of Companies, Inc. (NYSE:IPG) a chance to capture a growing market. By developing expertise in this area, the company will be well-placed in a high-growth segment of the advertising industry. Likewise, the integration of GenAI technologies into service offerings will enhance the efficiency and effectiveness of its creative output and provide more sophisticated data-driven insights to clients.
1) Omnicom Group Inc. (NYSE:OMC)
Number of Hedge Fund Holders: 26
Omnicom Group Inc. (NYSE:OMC) provides advertising, marketing, and corporate communications services.
Omnicom Group Inc. (NYSE:OMC) announced the formation of the Omnicom Advertising Group (OAG). This was done by consolidating creative agencies under unified leadership to enhance collaboration and service delivery. The company’s management expressed confidence in its growth prospects, mainly in the Flywheel segment. Omnicom Group Inc. (NYSE:OMC) reported significant new business wins, which include Amazon’s media business and Michelin’s global media account. The total comes out to be $5.3 billion in new business for H1 2024.
The company believes that leveraging and connecting the capabilities of Omnicom Media Group and Flywheel will help directly measure online retail sales generated from media campaigns across the full advertising journey from broadcast TV to upper funnel performance, media, and retail media. This development is unique to Omnicom Group Inc. (NYSE:OMC).
According to the company’s management, e-commerce sales worldwide are expected to increase by 50%, reaching ~$7 trillion by 2025. Flywheel’s acquisition significantly broadens Omnicom Group Inc. (NYSE:OMC)’s reach and influence in the rapidly expanding digital commerce and retail media sectors. Macquarie believes that the company’s internal and external organizational strategies continue to contribute to its success. These include the Flywheel acquisition and the integrations of its media and creative agencies.
Analysts at UBS Group raised their price objective on the shares of Omnicom Group Inc. (NYSE:OMC) from $120.00 to $124.00, giving a “Buy” rating on 16th October.
While we acknowledge the potential of OMC as an investment, our conviction lies in the belief that some deeply undervalued AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for a deeply undervalued AI stock that is more promising than OMC but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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