The rise in service activities, increased digital marketing services, and the success of the work-from-home trend enable the Zacks Advertising and Marketing industry to counter the prevailing revenue softness.

Customer-centric approaches, digital strategies, and technology investments are helping Publicis Groupe S.A. (PUBGY Quick QuotePUBGY - Free Report) , Omnicom Group (OMC Quick QuoteOMC - Free Report) , and Quad/Graphics, Inc. (QUAD Quick QuoteQUAD - Free Report) navigate the current testing times.

About the Industry

The Zacks Advertising and Marketing industry comprises companies that offer an extensive range of services, including advertising, branding, content marketing, digital/direct marketing, digital transformation, financial/corporate business-to-business advertising, graphic arts/digital imaging, healthcare marketing and communications, and in-store design services. Prominent industry players include Interpublic and Omnicom. The pandemic has significantly altered the way industry players conduct business and deliver services. Currently, the industry’s key focus is on channeling money and efforts toward media formats and devices. To position themselves well in the post-pandemic era, service providers are increasing their efforts to formulate strategic initiatives and identify sources of demand.

What's Shaping the Future of the Industry?

Economic Recovery: According to the advance estimate issued by the Bureau of Economic Analysis, the economy stayed resilient, with GDP increasing 2% in the first quarter of 2026 compared to 0.5% growth in the fourth quarter of 2025. Non-manufacturing activity remained strong, as reflected by the Services PMI, which stayed above the 50% mark for the 22nd consecutive month in April. Manufacturing also remained in expansion territory for the fourth straight month in April.

Reviving Demand: The industry is mature, with demand for services remaining stable over time. Revenues, income, and cash flows are anticipated to gradually reach pre-pandemic levels, aiding most industry players in paying out stable dividends.

Digital Marketing Gathering Steam: Digital media consumption has increased, with consumers spending more time on various media platforms and video-streaming services. Thus, agencies offering digital marketing services stand to gain, as these firms are better positioned to address the rapid change in customer preferences.

Zacks Industry Rank Indicates Solid Near-Term Prospects

The Zacks Advertising and Marketing industry, housed within the broader Zacks Business Services sector, currently carries a Zacks Industry Rank #46. This rank places it in the top 19% of 244 Zacks industries.

The group’s Zacks Industry Rank, which is the average of the Zacks Rank of all the member stocks, indicates underperformance in the near term. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than two to one.

Before we present a few stocks that you may want to consider for your portfolio, let’s take a look at the industry’s recent stock market performance and current valuation:

Industry's Price Performance

Over the past year, the Zacks Advertising and Marketing industry has underperformed the S&P 500 composite but outperformed the broader sector. The industry has gained 7% compared to the S&P 500 composite’s growth of 30% and the broader sector’s decline of 22% in the same time frame.

One-Year Price Performance

Industry's Current Valuation

Based on the forward 12-month price-to-earnings (P/E) ratio, which is commonly used for valuing advertising and marketing stocks, the industry is currently trading at 7.27X compared with the S&P 500’s 22.14X and the sector’s 18.01X.

Over the past five years, the industry has traded as high as 14.26 and as low as 7.27X, with the median being 17.38X, as the charts below show.

Price to Forward 12 Months P/E Ratio

3 Advertising Stocks to Buy

Here, we have presented three stocks that are well-positioned for near-term growth:

Publicis: The company is a provider of marketing, communications, and digital business transformation services.

It delivered a strong start to the year, continuing its long streak of industry outperformance despite ongoing macroeconomic uncertainty. The company reported healthy organic revenue growth across key markets, including the United States, Europe, and Asia-Pacific, further widening the gap with competitors. Publicis also reaffirmed its industry-leading full-year organic growth outlook, supported by expectations for accelerating momentum in the coming quarters. The company’s continued success is being driven by strong client demand, leadership in new business wins, and strategic investments in high-growth capabilities such as content measurement, sports marketing, and AI-powered solutions. Management also sees artificial intelligence as a major long-term growth driver that is strengthening partnerships and enhancing competitive positioning.

The Zacks Consensus Estimate for the company’s 2026 bottom line has been revised 1.7% upward to $2.35 over the past 60 days. It currently carries a Zacks Rank #2 (Buy). 

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. 

Omnicom: The company is a provider of advertising, marketing, and corporate communications services.

Omnicom delivered a strong first-quarter performance, supported by its integrated capabilities, expanding media platform, and AI-powered Omni platform. The company continues to strengthen its position in an increasingly complex and fragmented marketing environment through advanced data, identity, and media solutions. Omnicom also reported solid revenue growth alongside double-digit growth in adjusted diluted EPS, reflecting healthy operational momentum. Additionally, the company remains on track to achieve meaningful cost-reduction synergies while executing an aggressive share repurchase strategy under its $5 billion authorization. Management believes this combination of operational efficiency and disciplined capital allocation can support long-term profitability and earnings growth.

The Zacks Consensus Estimate for the company’s 2026 bottom line has been revised 6.5% upward to $10.97 over the past 60 days. It currently carries a Zacks Rank #2.

Quad/Graphics: The company is a marketing solutions provider.

It reported first-quarter results that were largely in line with expectations and indicated that it remains on track to achieve its full-year 2026 guidance. Despite macroeconomic pressures, including higher postage rates and supply-chain cost challenges tied to geopolitical conflicts, the company continues to focus on long-term growth, margin expansion, and disciplined cost management. Quad is also investing in innovative marketing solutions, AI-powered media capabilities, and strategic talent acquisition to deepen client relationships and enhance service offerings. Its audience strategy and omnichannel media services are gaining traction, while operational initiatives such as automation, AI-enabled tools, and advanced co-mailing solutions are helping improve efficiency, productivity, and client cost savings.

The Zacks Consensus Estimate for QUAD’s 2026 EPS has been revised 1.7% upward to $1.2 over the past 60 days. It currently carries a Zacks Rank #2.