Today’s featured asset is Stagwell Inc (STGW). According to our AI trading strategy, investing between 2021-03-17 and 2023-06-13 could have resulted in a 482.57% return. On average, each position was open for 77 days and made 53.62%. Our model indicates that STGW is a STRONGBUY with a buy price target of 5.07 and an overall accuracy of 0.72 when predicting an upward trend in the following 2 weeks. The analyst consensus price target is 11.25.
Company Overview
Stagwell Inc. is a publicly traded company on the NASDAQ exchange with the stock symbol STGW. The company is involved in the services-advertising agency industry and is headquartered in New York City. Stagwell operates a portfolio of marketing services companies which include digital and creative agencies, media services, analytics and insights, and performance marketing.
Markets
Stagwell is primarily involved in the services-advertising agency market. This market is composed of advertising agencies that provide creative, media, and digital services for their clients. The services-advertising agency industry is highly competitive and is dominated by a few large companies. The industry has seen growth in recent years driven by the increasing demand for digital and creative services, as well as the increased use of data and analytics in marketing.
Historic Company Performance
Stagwell has experienced strong growth over the past few years. Revenue for the company has grown from $176 million in 2017 to $259 million in the trailing twelve months (TTM). The company has also seen strong growth in gross profit, with gross profit increasing from $36 million in 2017 to $56 million in the TTM. The company has seen its profit margin remain steady at 1.3%, and its operating margin increase to 10.4%.
Share Price Performance
Stagwell’s stock price has been on a strong upward trend over the past few years. The stock price has increased from $4.80 at the beginning of 2017 to its current price of $5.07 (as of August 28th, 2023). The stock has outperformed the S&P 500 index over the past three years, with the stock price increasing by over 30% compared to the S&P 500’s 10% increase over the same period. The stock is currently trading at a price-to-earnings (P/E) ratio of 23.93 and a price-to-book (P/B) ratio of 3.107. The stock has a consensus price target of $11.25, implying potential upside of over 120%.
| Date | Symbol | Prediction | Model Accuracy | Price Target | Analyst Target |
|---|---|---|---|---|---|
| 2023-08-28 | STGW | STRONGBUY | 0.72 | 5.07 | 11.25 |
| 2023-08-14 | STGW | MEDIUMBUY | 0.72 | 5.80 | 11.25 |
| 2023-08-07 | STGW | WEAKBUY | 0.72 | 6.38 | 11.25 |
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