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 Wednesday, March 13, 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.

Airnet Technology Inc (ADR)’s Value Grade

Value Grade:

Airnet Technology Inc is a China-based investment holding company. The Company primarily operates through two segments. The Cryptocurrency Mining segment is mainly engaged in cryptocurrency mining business, focusing on expanding its computing powers measured by hash rate, which is devoted to supporting blockchains. The Media Network segment is mainly engaged in selling advertising time slots on its network, primarily air travel advertising network. The Company primarily operates its businesses in domestic market.

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.

Airnet Technology Inc (ADR) has a Value Score of 79, which is considered to be undervalued.

When you look at Airnet Technology Inc (ADR)’s price-to-sales ratio at 4.91 compared to the industry median at 1.06, this company has a higher price relative to revenue compared to its peers. This could make Airnet Technology Inc (ADR)’s stock less 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. Airnet Technology Inc (ADR)’s shareholder yield is higher than its industry median ratio of (1.29%). 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. Airnet Technology Inc (ADR)’s price-to-book ratio is lower than its industry median ratio of 1.46. This could make Airnet Technology Inc (ADR) more attractive to investors looking for a new addition to their portfolio.

GD Culture Group Ltd’s Value Grade

Value Grade:

GD Culture Group Ltd is a holding company principally engaged in the provision of marketing consulting services. The Company is an integrated marketing service agency, focusing on serving businesses in China in connection with brand management, image building, public relations, social media management and event planning. The Company is also committed to becoming a modern technology media organization that provide clients with customized services. In addition, the Company mainly operates its business in China market.

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.

GD Culture Group Ltd has a Value Score of 62, which is considered to be undervalued.

GD Culture Group Ltd’s price-earnings ratio is 0.3 compared to the industry median at 34.2. This means that it has a lower price relative to its earnings compared to its peers. This makes GD Culture Group Ltd more attractive for value investors.

GD Culture Group Ltd’s price-to-book ratio is higher than its peers. This could make GD Culture Group Ltd less attractive for value investors when compared to the industry median at 1.46.

You can read more about GD Culture Group Ltd’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.

Harte Hanks Inc’s Value Grade

Value Grade:

Harte Hanks, Inc. is a customer experience company. The Company operates through three business segments: Marketing Services, Customer Care, and Fulfillment & Logistics Services. The Marketing Services segment provides full-service multi-channel marketing from strategy to campaign execution. The Customer Care segment offers solutions that help its clients enhance the experience for their customers and improve business. Those solutions are primarily focused on: customer experience management, customer relationship management (CRM) and digital transformation, demand generation, and inside sales. The Fulfillment & Logistics Services segment offers varied product and mail fulfillment solutions including printing on demand, managing product recalls, and distributing literature and promotional products. It also provides third-party logistics and freight optimization services across the United States.

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.

Harte Hanks Inc has a Value Score of 88, which is considered to be undervalued.

Harte Hanks Inc’s price-earnings ratio is 2.5 compared to the industry median at 34.2. This means that it has a lower price relative to its earnings compared to its peers. This makes Harte Hanks Inc more attractive for value investors.

Harte Hanks Inc’s price-to-book ratio is lower than its peers. This could make Harte Hanks Inc more attractive for value investors when compared to the industry median at 1.46.

You can read more about Harte Hanks 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.

Oriental Culture Holding Ltd’s Value Grade

Value Grade:

Oriental Culture Holding LTD is an online provider of collectibles and artwork e-commerce services, which allow collectors, artists and art dealers and owners to access a art trading market. The Company provides customers of online platform with comprehensive services, including account opening, art investment education, market information, research, real-time customer support, and artwork warehousing services. The Company also provides industry solutions and related software products, system development and technical support services for cooperation e-commerce platform customers.

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.

Oriental Culture Holding Ltd has a Value Score of 67, which is considered to be undervalued.

Oriental Culture Holding Ltd’s price-to-book ratio is higher than its peers. This could make Oriental Culture Holding Ltd less attractive for value investors when compared to the industry median at 1.46.

You can read more about Oriental Culture Holding Ltd’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.

• Airnet Technology Inc (ADR) stock has a Value Grade of B.
• GD Culture Group Ltd stock has a Value Grade of B.
• Harte Hanks Inc stock has a Value Grade of A.
• Oriental Culture Holding Ltd stock has a Value Grade of B.

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 Wednesday, March 13
• 4 Undervalued Advertising & Marketing Stocks for Tuesday, March 12
• 4 Undervalued Advertising & Marketing Stocks for Monday, March 11
• Why Cardlytics Inc’s (CDLX) Stock Is Up 7.06%

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.