Based on key financial metrics such as the price-to-sales ratio, shareholder yield and the price-earnings ratio, the following 4 stocks made the list for top value stocks in the Advertising & Marketing industry. Those looking for value stocks to add to their portfolio may want to use this list as a starting point for further investment research.

Why Focus on Undervalued Advertising & Marketing Stocks?

Value investors seek to buy stocks at a discount to their intrinsic value. Long-term returns show that such strategies are advantageous. Value stocks, as a group, tend to outperform growth stocks over extended periods of time. Typically, value investors perform financial analysis of numerous metrics, don’t follow the herd and are long-term investors.

AAII’s A+ Investor Value Grade is derived from a stock’s Value Score. The Value Score is the percentile rank of the average of the percentile ranks of the price-to-sales ratio, price-earnings ratio, enterprise-value-to-EBITDA (EV/EBITDA) ratio, shareholder yield, price-to-book-value ratio and price-to-free-cash-flow ratio. The score is variable, meaning it can consider all six ratios or, should any of the six ratios not be valid, the remaining ratios that are valid. To be assigned a Value Score, stocks must have a valid (non-null) ratio and corresponding ranking for at least two of the six valuation ratios.

What Goes Into AAII’s Value Grade?

Stock evaluation requires access to huge amounts of data as well as the knowledge and time to sift through it all, make sense of financial ratios, read income statements and analyze recent stock movement. AAII created A+ Investor, a robust data suite that condenses data research in an actionable and customizable way suitable for investors of all knowledge levels, to help investors with that task.

AAII’s proprietary stock grades come with A+ Investor. These offer intuitive A–F grades for more than just value. It is possible for a stock to appear cheap based on one valuation metric but appear expensive on another. It is also possible for one valuation ratio to be associated with outperforming stocks during certain periods of time but not others. Some stocks may even have null values for certain metrics like the price-earnings ratio or the price-to-book ratio but not others. An example of this would be a company with losses instead of profits or a negative book value because of heavy borrowing. Negative earnings or book value result in non-meaningful ratios that are left blank or null.

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4 Undervalued Advertising & Marketing Stocks

Of course, there are countless value stocks that are worth mentioning, but this is a concise list of the top 4 undervalued stocks in the Advertising & Marketing industry for Thursday, February 29, 2024. Let’s take a closer look at their individual scores to see how they measure up against each other and the Advertising & Marketing industry median.

The Value Grade is assigned based on how each stock’s composite valuation compares to all other stocks.

The process for assigning grades starts with each variable for a given stock. The percentile rankings for all valid ratios that a stock has are calculated. So, for instance, a stock could have a price-to-book ranking in the 43rd percentile, a price-earnings ranking in the 67th percentile, a price-to-sales ranking in the 23rd percentile, etc. Then, those rankings are averaged for each stock. (A minimum of two valid variables are required, though all six will be used if available.)

Once the average of the individual variables is calculated, that average is ranked against all stocks. Put another way, each stock’s composite valuation is compared to all other stocks. These ranks are then sorted into quintiles from the cheapest 20% (a grade of A) to the most expensive 20% (a grade of F).

As always, we recommend that you conduct proper due diligence and research before investing in any security. We also suggest that investors utilize numerous grades, not just value, when it comes to deciding whether a company is a good fit for their allocation needs.

ZW Data Action Technologies Inc’s Value Grade

Value Grade:

ZW Data Action Technologies Inc is a China-based holding company. The Company mainly provides a one-stop services for its clients on its Omni-channel advertising, precision marketing and data analysis management system. The Company's main businesses include distributing the right to use search engine marketing service to increase the sales lead conversion rate for its clients' business promotion, selling Internet advertising space on its advertising portals and providing related data service to its clients through the Internet advertising management systems, and providing other e-commerce advertising and marketing and related value-added technical services. The Company is also engaged in development of blockchain industry and the related technology.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

ZW Data Action Technologies Inc has a Value Score of 86, which is considered to be undervalued.

When you look at ZW Data Action Technologies Inc’s price-to-sales ratio at 0.23 compared to the industry median at 1.12, this company has a lower price relative to revenue compared to its peers. This could make ZW Data Action Technologies Inc’s stock more attractive for value investors.

Shareholder yield is the sum of a stock’s dividend yield (paid over previous 12 months minus special dividends) and the percentage of net share buybacks over the previous 12 months. ZW Data Action Technologies Inc’s shareholder yield is higher than its industry median ratio of (1.54%). Value investors may look for an attractive shareholder yield because it can be a powerful tool for identifying if the company has a good management team.

As one of the most common value metrics, the price-to-book ratio evaluates a company’s current market price relative to its book value. ZW Data Action Technologies Inc’s price-to-book ratio is lower than its industry median ratio of 1.34. This could make ZW Data Action Technologies Inc more attractive to investors looking for a new addition to their portfolio.

Iclick Interactive Asia Group Ltd (ADR)’s Value Grade

Value Grade:

iClick Interactive Asia Group Ltd is an online marketing technology company. The Company serves as an integrated cross-channel gateway that provides marketers ways to optimize their online marketing cycle. Its integrated data-driven solutions help marketers identify, engage and activate potential customers, monitor and measure the results of marketing campaigns, and create content catering to potential customers across different content distribution channels through both PC and mobile devices. Its solutions are enabled and supported by data set, sophisticated data analytics capabilities and cutting edge technologies. It collects data from a variety of channels, including through its proprietary tracking tools, from marketers, publishers and ad exchanges when managing marketing campaigns, and to a lesser extent, from third-party strategic partners.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Iclick Interactive Asia Group Ltd (ADR) has a Value Score of 90, which is considered to be undervalued.

Iclick Interactive Asia Group Ltd (ADR)’s price-to-book ratio is higher than its peers. This could make Iclick Interactive Asia Group Ltd (ADR) less attractive for value investors when compared to the industry median at 1.34.

You can read more about Iclick Interactive Asia Group Ltd (ADR)’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Marchex Inc’s Value Grade

Value Grade:

Marchex, Inc. provides conversation intelligence platform. The Company?s primary conversation intelligence product offerings include Marchex Call Analytics; Marchex Call Analytics, Conversation Edition; Marchex Sales Engagement; Marchex Marketing Edge; Text Analytics and Communications; and Call Monitoring. Marchex Call Analytics is an analytics platform for enterprises, which depends on inbound phone calls to drive sales, appointments and reservations. Marchex Call Analytics, Conversation Edition is a product that can enable actionable insights for enterprise, mid-sized and small businesses. The Marchex Sales Engagement suite of products incorporate artificial intelligence-based functionality into each product, enabling businesses to understand customer conversations in phone calls and via text, in real-time and at scale. Marchex Sales Enablement products include Marchex Engage, Marchex Spotlight, Marchex Engage for Automotive and Marchex Platform Services.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Marchex Inc has a Value Score of 64, which is considered to be undervalued.

Marchex Inc’s price-to-book ratio is lower than its peers. This could make Marchex Inc more attractive for value investors when compared to the industry median at 1.34.

You can read more about Marchex Inc’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Mastermind Inc’s Value Grade

Value Grade:

Mastermind, Inc. is an involvement marketing service agency that designs, creates, and develops branding and marketing campaigns, primarily for large corporate clients with brands. The Company specializes in getting consumers and customers to take action that leads to brand awareness, trial, loyalty, and advocacy. The Company's programs can take on various forms, including creating and managing digital content, designing campaign websites/landing pages, social media and viral campaigns, mobile marketing initiatives, and brand communications. Its initiatives include content marketing, influencer marketing, digital marketing, social marketing, gamification, promotion marketing, social channel optimization and digital issue management communications. It is also organized into six groups, such as account management, creative and development services, content studio, strategy, analytics and research, technology and campaign management, and agency management and administration.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Mastermind Inc has a Value Score of 96, which is considered to be undervalued.

Mastermind Inc’s price-earnings ratio is 4.4 compared to the industry median at 32.8. This means that it has a lower price relative to its earnings compared to its peers. This makes Mastermind Inc more attractive for value investors.

Mastermind Inc’s price-to-book ratio is higher than its peers. This could make Mastermind Inc less attractive for value investors when compared to the industry median at 1.34.

You can read more about Mastermind Inc’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Other Advertising & Marketing Stock Grades

Value is just one of the five Stock Grades included in our A+ Investor service. AAII members can see the top-graded stocks—those with grades of A or B for value, growth, momentum, earnings estimate revisions and quality—on the A+ Stock Grades Screener.

Also, if you want full access to all of AAII’s premium services, you can subscribe to one convenient bundled plan called AAII Platinum where you can try out A+ Investor, AAII Dividend Investing, the Stock Superstars Report, Growth Investing and VMQ Stocks. With the other premium services, you can dive deep into additional metrics, portfolios, commentary and information about Advertising & Marketing stocks as well as other industrys.

Choosing Which of the 4 Best Advertising & Marketing Stocks Is Right for You

Choosing which value stocks to invest in will ultimately depend on your individual goals and allocation; however, comparing similar value stocks in the same industry can help you analyze which might be better investments for you in the long run. So, let’s take a look at the Value Grade for all of our stocks.

• ZW Data Action Technologies Inc stock has a Value Grade of A.
• Iclick Interactive Asia Group Ltd (ADR) stock has a Value Grade of A.
• Marchex Inc stock has a Value Grade of B.
• Mastermind Inc stock has a Value Grade of A.

Now that you have a bit more background about each of the 4 undervalued stocks in the Advertising & Marketing industry as well as their overall grades, it’s time for you to conduct additional research to see if these could fit your portfolio needs based on your goals and risk tolerance. AAII can help you figure out both and identify which investments align with what works best for you.

We do so through a program of education that teaches you to invest for yourself and become an effective manager of your own wealth—no more relying on others for your financial independence. You can rely on AAII for timeless articles on financial planning and stock-picking, unbiased research and actionable analysis that makes you a better investor.

A+ Investor adds to that qualitative teaching by giving you a powerful data suite that helps you whittle down investment decisions to find stocks, exchange-traded funds (ETFs) or mutual funds that meet your needs.

Additional Resources About Advertising & Marketing Stocks

Want to learn more about Advertising & Marketing stocks to see if they could be the right investment for you? Check out some additional resources and articles to help you on your financial journey.

• 4 Undervalued Advertising & Marketing Stocks for Thursday, February 29
• 3 Undervalued Advertising & Marketing Stocks for Wednesday, February 28
• Why Integral Ad Science Holding Corp’s (IAS) Stock Is Down 41.46%
• Why Magnite Inc’s (MGNI) Stock Is Down 9.11%

AAII Disclaimer

We make no representations or warranties that any investor will, or is likely to, achieve profits similar to those shown, because past, hypothetical or simulated performance is not necessarily indicative of future results. Before making an investment decision, you should consider your circumstances and whether the information on our content is applicable to your situation. This information was prepared in good faith and we accept no liability for any errors or omissions. The full disclaimer can be read here.