$21.90
arrow_drop_up0.85%Is ZETA a Buy or Sell based on AI Analysis?
Fundamental Analysis
Based on the fundamental analysis of Zeta Global Holdings, several key indicators stand out. Firstly, the company's revenue growth of 23.31% indicates a healthy increase in top-line performance. This growth is complemented by a gross margin of 55.31%, showcasing efficient cost management and potentially strong profitability. Additionally, the company's positive free cash flow margin of 7.49% suggests that Zeta Global Holdings is generating sufficient cash flow to reinvest in the business or distribute to shareholders. Moreover, the company's price-to-sales ratio of 7.81 and price-to-book ratio of 29.6 highlight the company's valuation relative to its revenue and book value. A price-to-sales ratio below 10 is generally considered favorable, indicating that the stock may be undervalued relative to its sales. However, the high price-to-book ratio may suggest that the stock is trading at a premium compared to the value of its assets. Investors should carefully consider these fundamental indicators in conjunction with other financial metrics before making investment decisions.
Positive Development
Zeta Global Holdings Corp is continuing to innovate and expand its marketing technology capabilities through strategic partnerships and acquisitions. This shows a strong focus on growth and development, which could lead to increased market share and revenue. The company's acquisition of LiveIntent, a pioneer in people-based marketing, is expected to strengthen its own offerings and increase its competitiveness in the market. Zeta's attendance at Zeta Live 2024 has doubled year-over-year, indicating increased interest and adoption of its marketing platform.
Negative Development
The company's net debt to total capital ratio is high at 0.0739, indicating a potentially risky level of debt. The company's operating margin is negative, indicating a lack of profitability. The company's pre-tax margin is also negative, which could indicate potential financial difficulties.
Technical Analysis
Zeta Global Holdings (ZETA) shows a mix of technical indicators for the month, with one buy signal (ATR), five hold signals (MACD, ADX, WILLR, ROC, and STOCHRSI), and two sell signals (RSI and CCI). This suggests a somewhat neutral stance on the stock from a technical analysis perspective. The company's stock sector is in the Technology sector, which has seen a significant change of 38.35% in the past year. Additionally, ZETA's stock market change over the past year has been 59.96%, indicating a strong performance in line with overall market trends. The company's long-term trendline shows a consistent upward slope, with predictions from October 2023 to October 2024 forecasting a price increase from $7.38 to $9.95. On the financial side, Zeta Global Holdings has a price-to-sales ratio of 7.81 and a price-to-book ratio of 29.6, which are both relatively high compared to industry standards. The company's enterprise value to EBITDA is -10.51, indicating a potential undervaluation of the company based on its earnings before interest, taxes, depreciation, and amortization. The stock's technical analysis also highlights a beta of 1.28, suggesting the stock is slightly more volatile compared to the overall market. Overall, ZETA's technical indicators and financial ratios provide a comprehensive view of the company's performance and potential investment opportunities.
Conclusion and recommendation
Based on the data provided, Zeta Global Holdings (ZETA) is currently showing a neutral technical rating and a market score of 58. The stock has experienced a 4.8% decrease in price since the previous close, with the seven-day price change sitting at -16.47%. Despite this recent decline, the company has shown strong growth over the past six months and year-to-date, with price change percentages of 123.89% and 216.11% respectively. The stock also has a high market ownership score of 33, indicating a significant level of institutional ownership. In conclusion, Zeta Global Holdings appears to be a promising investment opportunity with its strong growth performance and significant institutional ownership. While there may be short-term volatility in the stock price, the company's solid financials and positive long-term outlook suggest potential for further growth. Investors may want to consider keeping an eye on ZETA for potential buying opportunities, particularly if the stock price experiences further declines. It is recommended to conduct thorough research and analysis before making any investment decisions in order to fully understand the risks and potential rewards associated with investing in Zeta Global Holdings.