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Best Advertising Agency Stocks to Buy Now (2024)

Top advertising agency stocks in 2024 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:

Direct Digital Holdings (NASDAQ:DRCT) is the top advertising agency stock with a Zen Score of 61, which is 32 points higher than the advertising agency industry average of 29. It passed 20 out of 33 due diligence checks and has strong fundamentals. Direct Digital Holdings has seen its stock return 18.18% over the past year, overperforming other advertising agency stocks by 9 percentage points.

Direct Digital Holdings has an average 1 year price target of $21.00, an upside of 428.97% from Direct Digital Holdings's current stock price of $3.97.

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.

Interpublic Group Of Companies (NYSE:IPG) is the second best advertising agency stock with a Zen Score of 54, which is 25 points higher than the advertising agency industry average of 29. It passed 19 out of 38 due diligence checks and has strong fundamentals. Interpublic Group Of Companies has seen its stock lose -12.66% over the past year, underperforming other advertising agency stocks by -22 percentage points.

Interpublic Group Of Companies has an average 1 year price target of $35.00, an upside of 12.36% from Interpublic Group Of Companies's current stock price of $31.15.

Interpublic Group Of Companies stock has a consensus Buy recommendation according to Wall Street analysts. Of the 4 analysts covering Interpublic Group Of Companies, 25% have issued a Strong Buy rating, 0% have issued a Buy, 75% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

National Cinemedia (NASDAQ:NCMI) is the third best advertising agency stock with a Zen Score of 53, which is 24 points higher than the advertising agency industry average of 29. It passed 21 out of 38 due diligence checks and has strong fundamentals. National Cinemedia has seen its stock return 62.6% over the past year, overperforming other advertising agency stocks by 53 percentage points.

National Cinemedia has an average 1 year price target of $6.08, an upside of 35.18% from National Cinemedia's current stock price of $4.50.

National Cinemedia stock has a consensus Buy recommendation according to Wall Street analysts. Of the 3 analysts covering National Cinemedia, 33.33% have issued a Strong Buy rating, 33.33% have issued a Buy, 33.33% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Out of 6 advertising agency stocks that have issued dividends in the past year, the 3 advertising agency stocks with the highest dividend yields are:

Entravision Communications (NYSE:EVC) has an annual dividend yield of 9.3%, which is 4 percentage points higher than the advertising agency industry average of 5.39%. Entravision Communications's dividend payout is not stable, having dropped more than 10% one times in the last 10 years. Entravision Communications's dividend has shown consistent growth over the last 10 years.

Entravision Communications's dividend payout ratio of -26.7% indicates that its high dividend yield might not be sustainable for the long-term.

Townsquare Media (NYSE:TSQ) has an annual dividend yield of 6.24%, which is 1 percentage points higher than the advertising agency industry average of 5.39%. 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 -29.8% indicates that its high dividend yield might not be sustainable for the long-term.

Deluxe (NYSE:DLX) has an annual dividend yield of 5.28%, which is the same as the advertising agency industry average of 5.39%. Deluxe's dividend payout is stable, having never dropped by more than 10% in the last 10 years. Deluxe's dividend has not shown consistent growth over the last 10 years.

Deluxe's dividend payout ratio of 151.9% indicates that its high dividend yield might not be sustainable for the long-term.

Advertising agency stocks were up 0.15% in the last day, and down -0.08% over the last week. Integral Ad Science Holding was the among the top gainers in the advertising agencies industry, gaining 1.89% yesterday.

Integral Ad Sciences shares are trading higher after the company reported better-than-expected Q1 sales results and issued Q2 and FY24 revenue guidance above estimates.

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

Direct Digital Holdings (NASDAQ:DRCT) is the most undervalued advertising agency stock based on WallStreetZen's Valuation Score. Direct Digital Holdings has a valuation score of 86, which is 61 points higher than the advertising agency industry average of 25. It passed 6 out of 7 valuation due diligence checks.

Direct Digital Holdings's stock has gained 18.18% in the past year. It has overperformed other stocks in the advertising agency industry by 9 percentage points.

Xunlei (NASDAQ:XNET) is the second most undervalued advertising agency stock based on WallStreetZen's Valuation Score. Xunlei has a valuation score of 71, which is 46 points higher than the advertising agency industry average of 25. It passed 5 out of 7 valuation due diligence checks.

Xunlei's stock has gained 7.5% in the past year. It has underperformed other stocks in the advertising agency industry by -2 percentage points.

Lendway (NASDAQ:LDWY) is the third most undervalued advertising agency stock based on WallStreetZen's Valuation Score. Lendway has a valuation score of 71, which is 46 points higher than the advertising agency industry average of 25. It passed 5 out of 7 valuation due diligence checks.

Lendway's stock has dropped -33.92% in the past year. It has underperformed other stocks in the advertising agency industry by -43 percentage points.