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Best Advertising Agency Stocks to Buy Now (2023)

Top advertising agency stocks in 2023 ranked by overall Zen Score. See the best advertising agency stocks to buy now, according to analyst forecasts for the advertising agencies industry.

According to Zen Score, the 3 best advertising agency stocks to buy right now are:

Lendway (NASDAQ:LDWY) is the top advertising agency stock with a Zen Score of 60, which is 30 points higher than the advertising agency industry average of 30. It passed 19 out of 33 due diligence checks and has strong fundamentals. Lendway has seen its stock lose -13.01% over the past year, underperforming other advertising agency stocks by -17 percentage points.

Glory Star New Media Group Holdings (NASDAQ:GSMG) is the second best advertising agency stock with a Zen Score of 59, which is 29 points higher than the advertising agency industry average of 30. It passed 18 out of 33 due diligence checks and has strong fundamentals. Glory Star New Media Group Holdings has seen its stock lose -73.61% over the past year, underperforming other advertising agency stocks by -78 percentage points.

Direct Digital Holdings (NASDAQ:DRCT) is the third best advertising agency stock with a Zen Score of 54, which is 24 points higher than the advertising agency industry average of 30. It passed 18 out of 33 due diligence checks and has strong fundamentals. Direct Digital Holdings has seen its stock return 16.36% over the past year, overperforming other advertising agency stocks by 12 percentage points.

Direct Digital Holdings has an average 1 year price target of $6.63, an upside of 158.79% from Direct Digital Holdings's current stock price of $2.56.

Direct Digital Holdings stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 2 analysts covering Direct Digital Holdings, 100% have issued a Strong Buy rating, 0% have issued a Buy, 0% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Out of 7 advertising agency stocks that have issued dividends in the past year, the 3 advertising agency stocks with the highest dividend yields are:

National Cinemedia (NASDAQ:NCMI) has an annual dividend yield of N/A, which is N/A percentage points lower than the advertising agency industry average of 5.16%. National Cinemedia's dividend payout is not stable, having dropped more than 10% five times in the last 10 years. National Cinemedia's dividend has not shown consistent growth over the last 10 years.

National Cinemedia's dividend payout ratio of 1.1% indicates that its dividend yield is sustainable for the long-term.

Townsquare Media (NYSE:TSQ) has an annual dividend yield of 6.45%, which is 1 percentage points higher than the advertising agency industry average of 5.16%. Townsquare Media's dividend payout is stable, having never dropped by more than 10% in the last 10 years. Townsquare Media's dividend has shown consistent growth over the last 10 years.

Townsquare Media's dividend payout ratio of 3,750% indicates that its high dividend yield might not be sustainable for the long-term.

Deluxe (NYSE:DLX) has an annual dividend yield of 6.35%, which is 1 percentage points higher than the advertising agency industry average of 5.16%. Deluxe's dividend payout is stable, having never dropped by more than 10% in the last 10 years. Deluxe's dividend has shown consistent growth over the last 10 years.

Deluxe's dividend payout ratio of 98.4% indicates that its high dividend yield might not be sustainable for the long-term.

Advertising agency stocks were down -0.63% in the last day, and down -0.59% over the last week.

We couldn't find a catalyst for why advertising agency stocks are down.

Based on WallStreetZen's Valuation Score, the 3 most undervalued advertising agency stocks right now are:

Glory Star New Media Group Holdings (NASDAQ:GSMG) is the most undervalued advertising agency stock based on WallStreetZen's Valuation Score. Glory Star New Media Group Holdings has a valuation score of 100, which is 69 points higher than the advertising agency industry average of 31. It passed 7 out of 7 valuation due diligence checks.

Glory Star New Media Group Holdings's stock has dropped -73.61% in the past year. It has underperformed other stocks in the advertising agency industry by -78 percentage points.

Lendway (NASDAQ:LDWY) is the second most undervalued advertising agency stock based on WallStreetZen's Valuation Score. Lendway has a valuation score of 71, which is 40 points higher than the advertising agency industry average of 31. It passed 5 out of 7 valuation due diligence checks.

Lendway's stock has dropped -13.01% in the past year. It has underperformed other stocks in the advertising agency industry by -17 percentage points.

Xunlei (NASDAQ:XNET) is the third most undervalued advertising agency stock based on WallStreetZen's Valuation Score. Xunlei has a valuation score of 71, which is 40 points higher than the advertising agency industry average of 31. It passed 5 out of 7 valuation due diligence checks.

Xunlei's stock has gained 18.25% in the past year. It has overperformed other stocks in the advertising agency industry by 14 percentage points.