Based on key financial metrics such as the price-to-sales ratio, shareholder yield and the price-earnings ratio, the following 6 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.

Latest Advertising & Marketing Stock News

Before choosing which top Advertising & Marketing stock to buy, be sure to conduct proper due diligence: analyze various financial metrics and look at historical data, public statements and news coverage.

The outlook for the advertising subindustry is neutral. There are growth prospects, supported by exposure to emerging market consumers and enhanced digital capabilities on new advertising technologies for data and analytics. However, global economic outlook has been significantly hampered by the global pandemic, precipitating a U.S. (and global) economic recession and some likely pullback of discretionary spending by several marketers. This provides potential for a revenue shortfall in the U.S. and some international markets. With growing share of advertising spending shifting toward the internet and other digital platforms. Despite the decline in traditional ratings, television advertising will likely continue to garner the bulk of the overall spending, thanks in part to marketers looking for mass audiences. In 2020, the S&P Advertising subindustry Index fell 11.5% versus a 15.8% increase for the S&P Composite 1500 Index.

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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6 Undervalued Advertising & Marketing Stocks

Of course, there are countless value stocks that are worth mentioning, but this is a concise list of the top 6 undervalued stocks in the Advertising & Marketing industry for Wednesday, January 04, 2023. 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.

Phoenix New Media Ltd ADR’s Value Grade

Value Grade:

Phoenix New Media Limited is a media company providing content on an integrated platform across Internet, mobile and television channels in China. The Company enables consumers to access professional news and other information, and upload text and images (UGC) on the Internet and through their mobile devices. It also transmits its UGC and in-house produced content to television viewers primarily through Phoenix TV. In addition to professionally produced content, content from Phoenix TV and its in-house produced content, the Company allows its users to UGC to its Websites and mobile applications. It operates in two segments: net advertising services and paid services. It provides its content and services through channels, including ifeng.com channel, video channel and mobile channel, and also transmits its content to television viewers, primarily through Phoenix TV. Together, these channels form a single converged platform providing integrated text, image and video content.

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.

Phoenix New Media Ltd ADR has a Value Score of 73, which is considered to be undervalued.

When you look at Phoenix New Media Ltd ADR’s price-to-sales ratio at 0.25 compared to the industry median at 0.58, this company has a lower price relative to revenue compared to its peers. This could make Phoenix New Media Ltd ADR’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. Phoenix New Media Ltd ADR’s shareholder yield is higher than its industry median ratio of (1.82%). 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. Phoenix New Media Ltd ADR’s price-to-book ratio is lower than its industry median ratio of 1.52. This could make Phoenix New Media Ltd ADR more attractive to investors looking for a new addition to their portfolio.

Fluent Inc’s Value Grade

Value Grade:

Fluent, Inc. is engaged in data-driven digital marketing services. The Company conducts customer acquisition services by operating digital marketing campaigns, through which it connects its advertiser clients with consumers they are seeking to reach. Its segments include Fluent and All Other. It delivers data and performance-based marketing executions to its clients, which consists of about 500 consumer brands, direct marketers, and agencies across a range of industries, including media and entertainment, financial products and services, health and wellness, retail and consumer and staffing and recruitment. It primarily provides performance marketing solutions to its clients based on their desired outcomes, or specific actions in their marketing funnels, including the submission of a registration form, an application installation, or a completed transaction. Its owned and operated media properties include Flash Rewards, The Smart Wallet and Find Dream Job to meet its clients needs.

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.

Fluent Inc has a Value Score of 92, which is considered to be undervalued.

Fluent Inc’s price-to-book ratio is higher than its peers. This could make Fluent Inc less attractive for value investors when compared to the industry median at 1.52.

You can read more about Fluent 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.

Harte Hanks Inc’s Value Grade

Value Grade:

Harte Hanks, Inc. is a global customer experience company that operates through three segments: Marketing Services, Customer Care, and Fulfillment & Logistics Services. Marketing services segment includes strategic planning, data strategy, performance analytics, creative development and execution, technology enablement, marketing automation, and database management. Customer Care includes customer service, social media support and technical support. Customer Care segment offers intelligently responsive contact center solutions, which use real-time data. Fulfillment & Logistics Services consists of mail and product fulfillment and logistics services. Fulfillment & Logistics Services offers a range of product fulfillment solutions, including printing on demand, managing product recalls. The Company also partners with clients to develop strategies and tactics to identify and prioritize customer audiences.

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 89, which is considered to be undervalued.

Harte Hanks Inc’s price-earnings ratio is 6.0 compared to the industry median at 13.3. 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.

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.

Insignia Systems, Inc.’s Value Grade

Value Grade:

Insignia Systems, Inc. is a provider of in-store advertising solutions to brands, retailers, shopper marketing agencies and brokerages. The Company provides point-of-purchase services (POPS) program, which is an account-specific, shelf-edge advertising and promotion tactic. Its product solutions include Merchandising Solutions, On-Pack Solutions and In-Store Signage Solutions. The Merchandising solutions are designed to help brands get discovered, build awareness and drive impulse purchases and include a variety of creative corrugate displays, side caps, free standing shippers and customized end cap solutions. The On-Pack solutions appear on the individual product package that includes BoxTalk, coupons, recipes, and cross-promotions. The Digital solutions consist of mobile programmatic advertising. In-Store Signage Solutions include point-of-purchase services signs and placed perpendicular to the shelf and designed to attract the attention of the shopper.

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.

Insignia Systems, Inc. has a Value Score of 93, which is considered to be undervalued.

Insignia Systems, Inc.’s price-earnings ratio is 1.5 compared to the industry median at 13.3. This means that it has a lower price relative to its earnings compared to its peers. This makes Insignia Systems, Inc. more attractive for value investors.

Insignia Systems, Inc.’s price-to-book ratio is higher than its peers. This could make Insignia Systems, Inc. less attractive for value investors when compared to the industry median at 1.52.

You can read more about Insignia Systems, 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.

Matthews International Corp’s Value Grade

Value Grade:

Matthews International Corporation is a global provider of brand solutions, memorialization products and industrial technologies. The Company operates through three segments: SGK Brand Solutions, Memorialization, and Industrial Technologies. The SGK Brand Solutions segment consists of brand management, pre-media services, printing plates and cylinders, engineered products, imaging services, digital asset management, merchandising display systems, and marketing and design services primarily for the consumer goods and retail industries. The Memorialization segment consists primarily of bronze and granite memorials and other memorialization products, caskets and cremation and incineration equipment primarily for the cemetery and funeral home industries. The Industrial Technologies segment includes marking and coding equipment and consumables, industrial automation products and order fulfillment systems for identifying, tracking, picking, and conveying consumer and industrial products.

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.

Matthews International Corp has a Value Score of 64, which is considered to be undervalued.

Matthews International Corp’s price-to-book ratio is lower than its peers. This could make Matthews International Corp more attractive for value investors when compared to the industry median at 1.52.

You can read more about Matthews International Corp’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.

Troika Media Group Inc’s Value Grade

Value Grade:

Troika Media Group, Inc. is a consumer engagement and customer acquisition consulting and solutions company. The Company is a professional services company that architects and builds enterprise value in consumer facing brands. It provides three brand and customer acquisition solutions through one organization that has three core Business Solutions Pillars: brand building and activation; marketing innovations and enterprise technology, and performance and customer acquisition. The Company’s business solutions are designed to be executed as standalone or integrated activations with a unified go-to-market approach. The Company’s managed services are orientated around the management of a customer’s marketing, data, and/or creative program. The Company’s performance solutions are orientated around the delivery of a predetermined event or outcome to a client.

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.

Troika Media Group Inc has a Value Score of 75, which is considered to be undervalued.

Troika Media Group Inc’s price-to-book ratio is higher than its peers. This could make Troika Media Group Inc less attractive for value investors when compared to the industry median at 1.52.

You can read more about Troika Media Group 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 6 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.

• Phoenix New Media Ltd ADR stock has a Value Grade of B.
• Fluent Inc stock has a Value Grade of A.
• Harte Hanks Inc stock has a Value Grade of A.
• Insignia Systems, Inc. stock has a Value Grade of A.
• Matthews International Corp stock has a Value Grade of B.
• Troika Media Group Inc stock has a Value Grade of B.

Now that you have a bit more background about each of the 6 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.

• 6 Undervalued Advertising & Marketing Stocks for Wednesday, January 04
• 5 Undervalued Advertising & Marketing Stocks for Tuesday, January, 03
• 3 Undervalued Advertising & Marketing Stocks for Monday, January, 02
• 5 Undervalued Advertising & Marketing Stocks for Friday, December, 30

AAII Disclaimer

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