In this article, we will take a look at the 7 best marketing stocks to buy according to hedge funds.
Artificial intelligence has seeped into nearly every industry. AI in marketing is not a new concept and has been here for a while, however, it is constantly evolving and innovating. AI in marketing not only covers planning, execution, and optimization, but now it also possesses strong generative capabilities. Marketing managers are now more focused on developing comprehensive AI marketing strategies rather than traditional marketing plans.
Some of the Most Revolutionary AI Marketing Companies
Albert AI by Zoomd, Cognitiv, and Singulate are some of the most innovative AI marketing companies. These companies have technological prowess and marketing expertise that meet even the smallest needs of marketers and advertisers. Let’s take a look at their offerings.
Albert AI by Zoomd is one of the most revolutionary AI marketing companies. The marketing company is one of the few completely autonomous platforms that is self-optimizing, holistic, agile, and speedy. The platform can create plans or ads, group keywords, build campaigns, group ads, identify customers, budget, schedule, create bids, develop detailed reports, and deliver crucial insights. Most companies plan and execute manually, and let AI take care of measurement and campaign execution. Albert AI, on the other hand, takes care of everything from planning to execution and measurement.
Cognitiv is another artificial intelligence marketing company that specializes in adaptive algorithmic advertising. Its products include its demand-side platform (DSP), Curation solution, and Context GPT. DSP is an AI platform that provides custom deep learning algorithms, cross-device graphs, deep learning CTV, dynamic user profiles, advanced understanding of context, and business outcome-focused KPIs. Its Curation solution is focused on eliminating static lookalike audiences and Context GPT, on the other hand, allows users to develop custom prompts relevant to their brand and is designed to offer real-time contextual insights for advertising.
Singulate is a prominent generative AI platform used by more than 850 marketers. The company strives to solve a major problem concerning the marketing industry. Marketers tend to own large amounts of data but fail to understand what to do with it. Singulate bridges the gap allowing marketers to segment audiences and personalize content at scale. Marketing messages crafted by Singulate receive a 5x to 10x increase in response rates. On October 8, the company announced that it had raised $2.3 million in a pre-seed round of funding from angel investors and venture capitalists.
While startups are emerging as revolutionary names in marketing, some companies have a historic standing, putting them ahead of others. With that let’s take a look at the 7 best marketing stocks to buy according to hedge funds.
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Our Methodology
For this article, we sifted through ETFs, the Yahoo Finance stock screener, the Finviz stock screener, our rankings, and similar rankings on the internet. We then examined the hedge fund sentiment as of Q2 2024 for each stock and picked the most popular ones. The best marketing stocks to buy according to hedge funds are in ascending order of the number of hedge fund holders, as of Q2 2024.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
7 Best Marketing Stocks to Buy According to Hedge Funds
7. Lamar Advertising Company (NASDAQ:LAMR)
Number of Hedge Fund Holders: 26
Lamar Advertising Company (NASDAQ:LAMR) is one of the best marketing stocks to buy according to hedge funds. The outdoor advertising company has over 200 offices in the United States. The company’s portfolio of outdoor advertising products includes print and digital billboards, airport displays, transit signs, and highway signs.
The company is one of the largest outdoor advertising companies in the world and we say that because it has 363,000 displays across North America. Lamar Advertising Company (NASDAQ:LAMR) has a unique style that does not hamper creativity. Its magnificent display of 4,800 digital billboards and hand-painted murals across the United States is proof of that.
Lamar Advertising Company (NASDAQ:LAMR) has a strong customer base and its financial results reflect that. In the second quarter of 2024, the company generated revenue worth $565.3 million, up by 4.5%, and net income worth $137.6 million. For the first half of 2024, revenue was $1.06 billion, and net income was $216.1 million. The company has consistent financial performance, contributing to its ranking on our list.
Lamar Advertising Company (NASDAQ:LAMR) was founded in 1902 and is also a dividend payer that has grown its dividend for three years. Overall, LAMR has strong fundamentals, setting it apart from its competitors.
6. The Interpublic Group of Companies, Inc. (NYSE:IPG)
Number of Hedge Fund Holders: 30
The Interpublic Group of Companies, Inc. (NYSE:IPG) ranks sixth on our list of the best marketing stocks to buy according to hedge funds. The advertising company operates across three major segments, Integrated Advertising & Creativity Led Solutions (IA&C), Media, Data & Engagement Solutions (MD&E), and Specialized Communications & Experiential Solutions (SC&E).
The Interpublic Group of Companies, Inc. (NYSE:IPG) is home to some of the world’s leading advertising and marketing brands including Acxiom, Craft, FutureBrand, Golin, Initiative, IPG Health, IPG Mediabrands, Jack Morton, McCann, Mediahub, and more. For the year ended 2023, the company generated $10.89 billion in revenue.
In the fiscal second quarter of 2024, the company logged $2.71 billion in revenue and $214.5 million in net income. Its subsidiaries, IPG Mediabrands and IPG Health led the results for the second quarter. Other subsidiaries also showed promising growth such as Deutsch LA, Golin, and Acxiom. The Interpublic Group of Companies, Inc. (NYSE:IPG) takes pride in delivering services with greater precision and accountability through the use of its industry-leading data and technology stack.
Keeping the macroeconomic environment in mind, The Interpublic Group of Companies, Inc. (NYSE:IPG) expects to achieve organic growth of 1% and through that growth, the company will sustain its net income. The company also has strong cash flows and value-added capital investments.
5. Omnicom Group Inc. (NYSE:OMC)
Number of Hedge Fund Holders: 31
Omnicom Group Inc. (NYSE:OMC) is one of the best marketing stocks to buy according to hedge funds. The media company specializes in marketing and corporate communication. It has over 5,000 clients in more than 70 countries.
The company provides its marketing services through a bunch of major agencies which include Omnicom MediaGroup, Omnicom Advertising Group, DAS Group of Companies, and Flywheel, among others. Its marketing solutions cover brand advertising, customer relationship management, media planning, buying services, public relations, and communications.
The company is committed to expansion. Only recently, Omnicom Group Inc. (NYSE:OMC) announced the acquisition of LeapPoint, a digital advisory firm that helps customers improve the overall performance of their marketing lifecycle. The acquisition will position OMC as a complete marketing solution-oriented company.
Omnicom Group Inc. (NYSE:OMC) is a prominent marketing stock and we say that because of its solid expansion strategy. The company’s roadmap along with its strong financials position it as an emerging leader in the advertising and marketing world. According to our Insider Monkey database, 31 hedge funds were bullish on the stock at the close of Q2 2024.
4. LiveRamp Holdings, Inc. (NYSE:RAMP)
Number of Hedge Fund Holders: 32
LiveRamp Holdings, Inc. (NYSE:RAMP) ranks fourth on our list of the best marketing stocks to buy according to hedge funds. The company offers a data collaboration platform primarily used for marketing purposes. The platform allows companies to build their identity infrastructure on the platform and then leverage data to improve reach to new customers and retain existing ones.
The need for data in marketing is ever growing and LiveRamp Holdings, Inc. (NYSE:RAMP) is devoted to bridging the gap. Some of its customers include Hulu, Google, Marketo, and Walmart, to name a few. The company helps its clients develop a consumer data strategy, create an enterprise identity, maximize marketing impact, and measure results using data.
Speaking of financials, in the first fiscal quarter of 2025, the company logged solid numbers. LiveRamp Holdings, Inc. (NYSE:RAMP) reported double-digit growth in revenue for the second consecutive quarter. To expand its footprint, the company announced a partnership with Nielsen in June. The collaboration will allow marketers to connect first and third-party data sources to Nielsen through LiveRamp, facilitating a streamlined marketing approach across platforms.
Overall, the company’s data collaboration platform is expected to report sustained growth as it targets high-growth markets such as cloud computing, AI marketing, e-commerce, and CTV platforms.
3. Clear Channel Outdoor Holdings, Inc. (NYSE:CCO)
Number of Hedge Fund Holders: 32
Clear Channel Outdoor Holdings, Inc. (NYSE:CCO) is an outdoor advertising company that provides its services in more than 65 markets and over 55 commercial airports in the United States. The advertising agency helps companies reach the right target audience through its extravagant outdoor campaigns using 2D extensions, 3D props, 3D images, and augmented reality.
Clear Channel Outdoor Holdings, Inc. (NYSE:CCO) also owns a suite of data solutions that helps businesses plan, optimize, and measure their campaigns. The suite uses anonymous data to infer the success and effectiveness of campaigns. Its outdoor capabilities include roadside billboards, airport advertising displays, and urban street furniture.
The company’s financial results are a reflection of its innovative approach to outdoor advertising. In the second quarter of 2024, the company generated revenue worth $559 billion, up by 5.4%. The revenue growth was primarily driven by growth in America, North Europe, and its Airports segment. Clear Channel Outdoor Holdings, Inc. (NYSE:CCO) also saw growth in its data analytics segment, particularly in the United States. Its Airport segment remained strong, carrying historic momentum, growing at 21% year-over-year.
Clear Channel Outdoor Holdings, Inc. (NYSE:CCO) has strong fundamentals and is working to achieve solid full-year results. The company stands out as a transformative outdoor advertising agency because of its extensive use of data and technology. 32 hedge funds held stakes in CCO at the end of Q2 2024, according to the Insider Monkey database.
2. The Trade Desk, Inc. (NASDAQ:TTD)
Number of Hedge Fund Holders: 46
The Trade Desk, Inc. (NASDAQ:TTD) is a digital marketing company that ranks second on our list of the best marketing stocks to buy according to hedge funds. The company specializes in the provision of advertising automation technologies and products that streamline digital content for advertisers of all sizes. The platform has over 500 partners including Disney Advertising, ESPN, Hulu, WSJ, TikTok, and Spotify, to name a few.
The company has a self-service platform that helps advertisers use data to target the right audience at every stage of the customer journey. The platform covers omnichannel advertising, audience targeting, identity solutions, APIs, custom solutions, and measurement and optimization solutions.
In the second quarter of 2024, Trade Desk, Inc. (NASDAQ:TTD) logged $585 million in revenue, up by 26% year-over-year. The company is known for its unique connected television (CTV) solution, which is supposedly growing the fastest. CTV is also emerging as a crucial aspect of the digital advertising space. Connected television enhances the way advertisers reach their audience using smart TVs.
Trade Desk, Inc. (NASDAQ:TTD) is not just spearheading CTV advertising but it is also part of an industry that is rapidly growing. As the need for focused data grows, more and more companies will require products and services offered by TTD.
Rowan Street Capital stated the following regarding The Trade Desk, Inc. (NASDAQ:TTD) in its Q2 2024 investor letter:
“We have owned The Trade Desk, Inc. (NASDAQ:TTD) for a little over 4 years now, opportunistically establishing a position in March of 2020 at a cost basis of $17.40 (split-adjusted). Since then, TTD has appreciated nearly sixfold, delivering an annualized return of approximately 55%. These are indeed remarkable results, but it’s important to recognize that this journey has been far from a smooth ride—much like many of our other investments. Since its public debut in 2017, the stock has experienced several significant drawdowns, with the most notable occurring in 2022 when it declined by over 60% (see below).
As we have previously discussed in relation to our investments in Meta and Spotify, one would have to be comfortable with sitting through these dramatic drawdowns and keeping their emotions in check in order to realize the long-term rewards of compounding that this company had delivered…” (Click here to read the full text)
1. Hubspot, Inc. (NYSE:HUBS)
Number of Hedge Fund Holders: 80
Hubspot, Inc. (NYSE:HUBS) ranks first on our list of the best marketing stocks to buy now. The marketing company develops and offers software products for inbound marketing, customer services, SEO, and sales, for businesses of all sizes.
Hubspot, Inc. (NYSE:HUBS) serves over 228,000 customers in over 135 countries. As of Q2 2024, the company grew its customers by 23% and revenue by 20%. The company is focused on providing premium marketing and CRM services to small and medium-sized businesses. Hubspot has been striving to provide a complete suite of products to customers rather than stand-alone products, and it would not be an exaggeration to say that it has been quite successful in doing that.
The company is now home to several suites of products including the marketing hub, the sales hub, the service hub, the content hub, the operations hub, and the commerce hub. Hubspot, Inc. (NYSE:HUBS) was one of the first companies to integrate artificial intelligence into its product offerings. The marketing giant has been launching new AI tools rapidly and in September, Hubspot, Inc. (NYSE:HUBS) added another name to its family. On September 18, the company launched Breeze, a new embedded tool focused on data enrichment.
Overall, Hubspot, Inc. (NYSE:HUBS) was one of the first companies to provide a complete suite of marketing solutions to customers and is one of the first companies in the industry to pour capital into AI. This puts the company at an advantage, explaining why 80 hedge funds were bullish on the stock at the close of Q2 2024.
Artisan Partners’ Artisan Mid Cap Fund stated the following regarding HubSpot, Inc. (NYSE:HUBS) in its Q3 2024 investor letter:
“Along with Dexcom and Celsius, a notable trim in the quarter was HubSpot, Inc. (NYSE:HUBS). HubSpot is a leading cloud-based customer relationship management software provider for small-to-medium businesses. The stock was a top performer in 2023 as it meaningfully improved its profitability after several years of heavy investment. However, as we mentioned earlier in this letter, the environment for cloud software providers has been challenging in 2024 as macroeconomic pressures have impacted customer spending. Our long-term conviction remains intact, but we reduced the position due to near-term uncertainty. Meanwhile, we are encouraged by the company’s efforts to leverage AI advances to help internally (e.g., more efficient software development) and externally (e.g., new agent-based apps to help customers extract more value out of its products).”
Overall, HUBS ranks first among the 7 best marketing stocks to buy according to hedge funds. While we acknowledge the potential of marketing companies, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than HUBS but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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