We recently compiled a list of the 10 Best Marketing Stocks to Buy Right Now. In this article, we are going to take a look at where QuinStreet Inc. (NASDAQ:QNST) stands against the other marketing stocks.
According to estimates on Statista, advertising spending across the globe should clock a growth rate of 5.4%, reaching $1.4 trillion in 2029. 80% of the total ad spend will come from digital sources in 2029 with programmatic advertising capturing 85% of the total advertising market. TV and Video Advertising will have a third of the share in 2025 and almost 40% of ad spending will take place in the US. Players like Google and Meta are expected to shape the advertising market by offering new landscapes in this sector.
Advertising ETFs have generated returns of 3.04%, 2.65% and 21.66% for 1-month, 3-month and 1-year tenors. While big tech players pose a threat, there is immense potential to tap a constantly growing advertising pie that would benefit traditional players.
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Our Methodology
For this article we picked 10 marketing stocks trending on latest news. With each stock we have mentioned the number of hedge fund investors. 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).
A customer service representative attending to a customer enquiry from a home services area.
QuinStreet Inc. (NASDAQ:QNST)
Number of Hedge Fund Investors: 19
QuinStreet Inc. (NASDAQ:QNST) is an online performance marketing company that provides customer acquisition services for its clients in the United States and internationally. The company has been a loss-making venture so far but it could breakeven in the next 12 months. The key verticals for the firm like insurance, home services, credit cards and banking are showing robust growth. It received an upward price target from $23 to $27 from Stephens with an Overweight rating.
Q1-25 results have been strong as QNST saw its revenue increase by 125% y-o-y primarily driven by higher auto insurance budgets and an increase in client, media and product footprint. Analysts believe that the momentum from the insurance sector is expected to continue and at the current rate of growth, breakeven should be achieved in the next 12 months. QNST has also managed to expand its margin and the digital marketing space is the focus area for the company to maintain the run rate in 2025.
Overall QNST ranks 9th on our list of the best marketing stocks to buy now. While we acknowledge the potential of QNST as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than QNST but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
