Summary
WarrenAI, using a suite of Investing Pro measures - including fair value calculations, Pro scores, technical readings and analyst price targets - has identified five adtech stocks that stand out on a combination of valuation upside, fundamental momentum and technical strength. The model surfaces a range of opportunities from deep-value plays to turnaround candidates, with fair value upside estimates running from 22.1% to 57.1% for the five highest-ranked names.
Overview of the ranking methodology
The selection reflects a blend of valuation gaps to Investing Pro fair values, consensus analyst target comparisons, forward-looking earnings growth projections and short-term technical signals. WarrenAI’s list highlights stocks that have experienced notable selloffs over the past year, creating potential entry points for investors focused on discounted valuations and projected earnings trajectories.
Top five adtech names identified
WarrenAI’s ranked list includes the following companies, presented with the fair value upside, analyst target comparisons, current trading levels and other metrics as reported by Investing Pro.
- DoubleVerify (NYSE: DV) - Topping the list, DV shows a 57.1% upside to a fair value of $14.94 and a 17.1% premium to the consensus analyst target of $13.78. The stock trades at $9.50 and carries a Pro Score of 2.76. It posts the sector’s lowest forward price-to-earnings ratio of 9.6x. Despite a 58.6% decline over the past year, DoubleVerify projects a 59.5% EPS forecast compound annual growth rate (CAGR) over three years. One-hour technicals flag a Strong Buy.
- Digital Turbine (NASDAQCM: APPS) - Ranked second, APPS shows 54.5% upside to a fair value of $5.91 and is trading at $3.83. It is unique among the quintet in posting a positive one-year return of 13.3%. Revenue is projected to grow at a 49.2% CAGR over three years and the company has a Pro Score of 1.67. The company has also recently appointed a new CTO from Microsoft AI. Short-term technicals register a Strong Sell, indicating potential near-term volatility.
- The Trade Desk (NASDAQGM: TTD) - TTD offers 45.6% upside to fair value of $37.22 and 18.3% upside to analyst targets of $51.52. Trading at $25.57 after a 66.7% one-year decline, the stock has a Pro Score of 2.82 and carries a projected EPS forecast CAGR of 48.7%. Evercore ISI maintains an Outperform rating and expects Q1 upside. Technical indicators point to a Strong Buy.
- Magnite (NASDAQGS: MGNI) - MGNI shows 36.5% upside to a fair value of $16.34 and 19.3% to analyst targets of $26.57. The shares are at $11.97, down 32.6% over one year. Magnite posts the highest EPS forecast CAGR in the group at 73.2% and holds a Pro Score of 2.63. Technicals read Strong Buy. The company recently expanded its New York Times ad collaboration.
- PubMatic (NASDAQGM: PUBM) - Rounding out the list, PUBM carries 22.1% upside to a fair value of $16.34 and 46.4% to analyst targets. Trading at $13.40 after a 55.6% one-year decline, PubMatic has a Pro Score of 2.27. Its EPS forecast CAGR shows a 20.8% decline, which represents a clear downside risk despite technicals signaling Strong Buy and analysts noting CTV growth potential.
Implications for investors and impacted sectors
The spots highlighted by WarrenAI sit at the intersection of digital advertising, adtech platforms and connected TV (CTV) monetization. Investors focused on the adtech segment - which touches media companies, digital publishers and streaming platforms - may view these names as candidates for recovery or re-rating if projected earnings materialize and sector valuations stabilize.
Key considerations for portfolio construction
While the listed companies display a mix of deep-value attributes and strong forecasted earnings growth, short-term technicals vary across the group and some carry notable downside risks. Investors should weigh valuation upside against near-term volatility and divergent earnings outlooks within the cluster.
Subscription note
WarrenAI’s ranking is based on Investing Pro metrics including fair value, Pro scores, technicals and analyst price targets. For readers seeking access to the Investing Pro toolkit referenced in this analysis, a promotional offer of 55% off on Investing Pro subscriptions is available.