Best Advertising Agency Stocks

The following advertising agent stocks represent the most promising investments in this sector. To this point, the companies behind these stocks have shown the flexibility, strength and resourcefulness to excel in the evolving advertising industry.

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Contributor, Benzinga
April 25, 2024

Thryv Holdings (NASDAQ:THRY)

Thryv Holdings Inc provides software as service (SaaS) management tools and digital and print marketing tools to small and mid-sized businesses. The company operates in three reportable segments namely Marketing Services; SaaS and Thryv International. It generates maximum revenue from the Marketing Services segment. The Marketing Services segment provides both print and digital solutions.

$22.88
-0.02[-0.09%]
Last update: 4:20PM (Delayed 15-Minutes)
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Open22.540Close22.880
Vol / Avg.108.267K / 146.428KMkt Cap813.563M
Day Range22.150 - 22.98052 Wk Range15.990 - 26.010

Magnite (NASDAQ:MGNI)

Magnite Inc is an independent sell-side advertising platform that combines Rubicon Project’s programmatic expertise with Telaria’s leadership in CTV. The company provides a technology solution to automate the purchase and sale of digital advertising inventory. Publishers use the company’s technology to monetize their content across all screens and formats, including desktop, mobile, audio, and CTV. Anchored in sunny Los Angeles, California, New York, and London, Magnite has offices across North America, EMEA, LATAM, and APAC.

$8.86
-0.24[-2.64%]
Last update: 5:39PM (Delayed 15-Minutes)
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Open8.810Close8.800
Vol / Avg.1.443M / 1.177MMkt Cap1.240B
Day Range8.600 - 8.83552 Wk Range6.280 - 15.730

Omnicom Group (NYSE:OMC)

This New York-based advertising agency engages in almost every aspect of advertising and marketing. It provides above the line services like branding, advertising, digital marketing, direct marketing and business-to-business advertising. Under the same banner, it offers a suite of services that include market research, merchandising, point of sale and product placement.

Omnicom’s P/E ratio is a comfortable 9.37 and an earning per share of $117. However, the company’s 2.25 debt-to-equity ratio puts it in the bottom 8% of advertising agencies in this category. With all things considered, Omnicom’s strong stock price history is a potent lure for buy-and-hold investors.

$96.72
0.74[0.77%]
Last update: 4:22PM (Delayed 15-Minutes)
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Open95.300Close96.710
Vol / Avg.2.095M / 1.695MMkt Cap18.941B
Day Range95.080 - 97.24552 Wk Range72.200 - 99.230

Lamar Advertising (NASDAQ:LAMR)

You will find Lamar Advertising in the real estate sector under the REITs — specialty industry classification. With over 360,000 displays across the U.S. and Canada, it’s among the largest outdoor advertising companies in North America. Also, Lamar has the largest digital billboard network in the U.S. It has a good P/E ratio of 8.75 and an earnings per share ratio of 3.71.

Lamar has a wide variety of signs to choose from including digital, backlit, banners, wraps and changing stations. It has signage in 25 major U.S. airports.

$112.81
-1.25[-1.10%]
Last update: 4:00PM (Delayed 15-Minutes)
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Open113.200Close112.810
Vol / Avg.331.701K / 404.133KMkt Cap11.530B
Day Range111.640 - 113.63052 Wk Range77.205 - 121.990

HubSpot (NYSE:HUBS)

HubSpot provides a cloud-based marketing, sales, and customer service software platform referred to as the growth platform. The applications are available ala carte or packaged together. HubSpot’s mission is to help companies grow better and has expanded from its initial focus on inbound marketing to embrace marketing, sales, and service more broadly. The company was founded in 2006, completed its IPO in 2014, and is headquartered in Cambridge, Massachusetts.

$632.40
-19.34[-2.97%]
Last update: 4:04PM (Delayed 15-Minutes)
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Open644.160Close636.100
Vol / Avg.497.004K / 517.230KMkt Cap32.047B
Day Range622.420 - 644.16052 Wk Range399.485 - 693.850

The advertising field has always been competitive. The giant brand name agencies have long dominated this market with exclusive connections to the major media outlets. However, technology has created new channels to reach the buying public. It's a great time to learn about advertising agency stocks for your investment portfolio.

The top advertising agents can no longer rely on the economy of scale and backroom deals to dominate this sector. Obviously, the winning big ad agencies in this era of specialization have the most promising stocks. 

Quick Look at the Best Advertising Agency Stocks:

Overview: Advertising Agent Stocks

The golden age of advertising is gone. An advertising agency can’t continue to exist with just a tiny list of services. The general public is tired of looking at ads in the same format. 

Technology is rapidly changing the platforms and channels for reaching the consumer. In advertising, this is the age of the customer and customer data will continue to influence the advertising model. 

The quality of a stock is only as good as its underlying company. Most investors buy stock in a company in anticipation of an increase in its value over a period of time. So, the future of advertising agency stocks is dependent on the performance of their underlying companies today. We will look at the best advertising agent stocks at the present time. 

Best Online Brokers for Advertising Agent Stock

Online brokers provide a great investment hub for you to research your potential stock choices, do backtesting of your investment strategies and track your investments. Here are some of the best online brokers in the industry.

Features to Look for in Advertising Agent Stock

  • Earnings-per-share ratio (EPS): The earnings-per-share ratio is an excellent way to determine the strength of a stock. It measures a company’s profit margin above the outstanding shares of stocks. Instead of relying on investor attitudes or projections, the EPS ratio uses concrete data. You can calculate this ratio by dividing the company’s annual net income by the number of outstanding shares.
  • Debt-equity ratio (D/E): As a way of accessing a stock’s risk level, you need to determine the company’s potential to pay its bills. Calculating this ratio requires dividing the total liabilities by the total amount of shareholder equity. The debt-equity ratio of 0.35 translates to this. For every $1 of equity financing, $0.35 is from debt. A high D/E ratio generally means that a firm is aggressively financing its growth with debt. 
  • Price-to-earnings ratio (P/E): The P/E ratio is a good way to determine whether a stock is overvalued or undervalued. It measures the relationship between the stock’s price and the company’s earnings. You can calculate it by dividing the stock price by the company’s EPS — lower is better.

Final Take on Advertising Agent Stocks

Like many sections of our society, the advertising business is evolving. One size doesn’t fit all anymore. The agencies behind these top advertising agent stocks get it. It’s the reason they are worth considering for your portfolio.

Q

What are the top five advertising agencies?

A

The top five advertisign agencies are Dentsu, IPG, Omnicom Group, Havas, Publicis, and WPP.

Q

Is advertising agency stock a good investment?

A

Advertising agency stock is a good investment if you buy stock in a company that is growing and investing in new technologies.

Q

Where can I find a broker to buy advertising agency stock?

A

To find a broker that deals in advertising agency stock, refer to the list above.