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Advertising & Marketing Stocks in Focus Despite COVID-19 Woes

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The coronavirus pandemic has resulted in a significant decline in advertising spending across the globe. Demand for marketing and advertising services, especially in the travel and retail sectors, will take a long time to revive. Decline in the number of social events such as sports, business conferences and concerts has also dampened demand.

However, not all is lost as the industry stands to benefit from the uptick in digital marketing. Notably, digital media consumption has shot up, with consumers spending more time indoors on various media platforms and streaming video services. Thus, agencies offering digital marketing services stand to gain, as these firms are better positioned to address this rapid change in customer preference. According to Magna’s most recent forecast, U.S. digital ad revenues are anticipated to be up 4.2% in 2020 and 7.4% in 2021.

Also, customer-centric approaches to business and cost-management initiatives are helping the industry players sail through these testing times.

Notably, the Zacks Advertising and Marketing industry has gained 16% over the past six months, handily outperforming the S&P 500 Index’s 15.5% appreciation and 3.2% decline of the broader Zacks Business Services sector.

 

3 Advertising & Marketing Stocks to Retain

Here we present three Zacks Rank #3 (Hold) Advertising and Marketing stocks, which have witnessed upward estimate revisions in the past 90 days and had an impressive run on the bourses in the past six months. These stocks also have a solid four-quarter average earnings surprise history. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Fluent, Inc. (FLNT - Free Report) : This New York-based company provides data-driven digital marketing services, primarily in the United States.

Fluent continues to benefit from its Media & Entertainment vertical, which acts as a major growth catalyst, backed by direct relationships in the streaming services and mobile gaming categories. The company is enjoying revenues from international markets as well. It is expanding its business performances, alongside staying focused on innovating products and platforms to strengthen its competitive position in the market.

The Zacks Consensus Estimate for current-year EPS has moved up more than 100% in the past 90 days. The company has a trailing four-quarter earnings surprise of 12.4%, on average. The stock has rallied 61.1% in the past six months.

FLUENT, INC. Price, Consensus and EPS Surprise

FLUENT, INC. Price, Consensus and EPS Surprise

FLUENT, INC. price-consensus-eps-surprise-chart | FLUENT, INC. Quote

 

The Interpublic Group of Companies, Inc. (IPG - Free Report) : This New York-based company provides advertising and marketing services worldwide.

Interpublic’s digital capabilities, diversified business model and geographic reach offer it a distinctive competitive advantage. It is one of the few continuing to reward shareholders amid this pandemic situation. Consistency in rewarding its shareholders through share buybacks and dividend payments boosts investor confidence and positively impacts earnings per share.

Effective cost management has been a major business criterion for the company amid this pandemic. With a flexible business model in place, Interpublic has been focusing on its strategic priorities, promptly investing in talent and offerings and also in companies globally to expand its product portfolio.

The Zacks Consensus Estimate for current-year EPS has moved up 8.8% in the past 90 days. The company has a trailing four-quarter earnings surprise of 21.6%, on average. The stock has rallied 23.9% in the past six months.

 

Omnicom Group Inc. (OMC - Free Report) : This New York-based company provides advertising, marketing, and corporate communications services.

The company’s bottom line is benefiting from ongoing operating efficiency initiatives in real estate, back office services, procurement and IT areas. Change in business mix resulting from disposition of some non-core or underperforming agencies over the past year is also aiding the bottom line. Consistent efforts in rewarding its shareholders through share buybacks and dividend payments boost investor confidence and positively impact earnings per share. Consistency and diversity of operations and increased focus on delivering consumer-centric strategic business solutions ensure persistent profitability for Omnicom.

The Zacks Consensus Estimate for current-year EPS has moved up 7.4% in the past 90 days. The company has a trailing four-quarter earnings surprise of 6.8%, on average. The stock has rallied 6.6% in the past six months.

Omnicom Group Inc. Price, Consensus and EPS Surprise

Omnicom Group Inc. Price, Consensus and EPS Surprise

Omnicom Group Inc. price-consensus-eps-surprise-chart | Omnicom Group Inc. Quote

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Omnicom Group Inc. (OMC) - free report >>

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FLUENT, INC. (FLNT) - free report >>