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Globe and Mail
2 days ago
- Business
- Globe and Mail
2 Top Bargain Stocks Ready for a Bull Run
The tech sector has been a market-beating beast in recent years. Tech-heavy exchange-traded funds (ETFs) like the Vanguard Information Technology ETF (NYSEMKT: VGT) and the Invesco QQQ Trust (NASDAQ: QQQ) have delivered annual returns of more than 21% over the last three years. Broad market trackers like the Vanguard S&P 500 ETF (NYSEMKT: VOO) only gained 15.5% per year over the same period. Yes, that's a fantastic return from a historic perspective, but the tech sector offered even stronger gains. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More » The technology boom has been driven by artificial intelligence (AI) news, starting with the public release of ChatGPT in November 2022. Many leaders in the AI market have soared sky-high, adding fuel to the tech sector's market performance fires, but also making those market darlings a bit expensive. Fortunately, the market-moving forces left a few top-notch companies behind. I still see several tech stocks with a combination of bright business prospects and modest stock prices. Let's check out a couple of underappreciated bargain-bin tech stocks. This dynamic duo looks ready for a fresh bull run. 1. Criteo Digital advertising has been a troubled sector since the first signs of an inflation crisis in 2021. Paris-based commerce media specialist Criteo (NASDAQ: CRTO) provides purchase-inspiring ad services to global brands. This focus placed the Parisian company in the epicenter of the inflation-based slowdown -- why invest in lavish marketing campaigns when consumers are pinching pennies and tightening belts? Criteo's revenues have indeed slumped since then, and so has the stock price. You know what's surging in recent quarters, though? That would be Criteo's free cash flows: CRTO Free Cash Flow data by YCharts The cash profits took a temporary dip, but came back stronger, with trailing cash flows reaching an all-time high in May's Q1 2025 report. But Criteo's stock price is down more than 30% in the last quarter, and the shares are trading at the bargain-bin valuation of 11.3 times earnings and 6.6 times free cash flow. I'm not saying the digital ad market is roaring back to life in the spring of 2025. The political climate may result in another inflation spike, and advertisers are already reducing their ad-spot spending right now. Hence, Criteo's undervalued stock may see more volatility and weakness in the coming months. However, I think the market makers have underestimated Criteo's ability to turn cash profits in a soft market. The Criteo shares you buy at a discount in this downswing should return to more reasonable valuation ratios someday. At the same time, the company's robust cash generation makes it less vulnerable to short-term financial challenges. You can buy Criteo stock with confidence while it's cheap. This one is poised for great long-term returns, and patience is the greatest Wall Street virtue of them all. 2. Hewlett Packard Enterprise My next recommendation is more of a household name. Hewlett Packard Enterprise (NYSE: HPE) has been around (in some form) since 1939. As the data center and cloud computing operator of the old HP business, HP Enterprise (aka HPE) plays a serious part in the AI boom. Indeed, seven out of the 10 most powerful supercomputers today were built by HP Enterprise. Only Chinese rival Lenovo has more systems in the top 500 than HP Enterprise, and nobody can match the total number-crunching performance of this company's ultra-powerful systems. Any company or organization that needs a top-performance system for their AI training and operations is likely to check out HP Enterprise's catalog first. So I'm talking about an AI powerhouse here. Yet, the stock price has dropped 16% lower year to date while smaller system builders Super Micro Computers (NASDAQ: SMCI) and Dell (NYSE: DELL) are up by 41% and down by just 1%, respectively. Trading at 8.9 times earnings and 14.3 times free cash flow, HP Enterprise looks downright cheap next to these challengers. HP Enterprise's stock could double or triple in price and still be affordable next to Supermicro or Dell. This could be a great value play on the hardware side of the AI boom. Should you invest $1,000 in Criteo right now? Before you buy stock in Criteo, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Criteo wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $653,389!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $830,492!* Now, it's worth noting Stock Advisor 's total average return is982% — a market-crushing outperformance compared to171%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of May 19, 2025
Yahoo
26-05-2025
- Business
- Yahoo
The Trade Desk vs. Criteo: Which Ad Tech Stock is the Better Buy Now?
The Trade Desk, Inc. TTD and Criteo S.A. CRTO are players in the digital advertising technology space. TTD operates a leading demand-side platform (DSP), which aids advertisers in focusing on data-driven advertising, while Criteo is a global commerce media company that operates as both a DSP and supply-side platform. The digital advertising market is poised for strong growth, fueled by rising mobile penetration, the proliferation of social media platforms, and the continued expansion of programmatic advertising. The global digital advertising market is projected to grow at a compound annual growth rate (CAGR) of 15.4% from 2025 to 2030, per a report from Grand View Research. The report also highlights that video will remain the dominant format, as brands increasingly recognize the power of visual storytelling. This positive trend in ad spending bodes well for both The Trade Desk and Criteo. But for investors looking to make a smart move in the digital advertising space, which of these two stocks offers the stronger investment case? Let's take a closer look at each company's strengths and weaknesses to determine which stands out as the better buy. The Trade Desk is gaining from improving demand trends as reflected by strong revenue growth in the first quarter of 2025. TTD reported revenues of $616 million, up 25% year over year and surpassing management's revenue guidance of at least $575 million. Adjusted EBITDA stood at $208 million (34% margin) compared with $162 million (33% margin) in the year-ago quarter. Video, which includes connected TV or CTV, represented a high 40 percent share of digital spend, while mobile had a mid-30 percent share. Customer retention stood at over 95% for the quarter reported. TTD reported net cash provided by operating activities of $291.4 million, and free cash flow was $230 million. Adjusted earnings per share came in at 33 cents, up 27% from the year-ago quarter. The company also noted that its Kokai platform was now being used by two-thirds of the clients, much ahead of schedule. The platform is now delivering on lower funnel KPIs, including 24% lower cost per conversion and 20% lower cost per acquisition, added TTD. Nonetheless, increasing macroeconomic uncertainty and escalating trade tensions do not augur well for TTD, as these could squeeze ad budgets. TTD highlighted the impact of the volatile macro backdrop, particularly on the large global brands. If macro headwinds worsen or persist into the second half of 2025, revenue growth may face further pressure due to reduced programmatic demand. The intensely competitive nature of the digital advertising industry, dominated by industry giants like Alphabet and Amazon, continues to put pressure on TTD's market positioning. Growing regulatory scrutiny around data privacy and evolving consumer data practices also threaten to disrupt the established audience-targeting methods. While CTV remains a strong revenue driver, the market is increasingly fragmented and competitive. Heavy reliance on CTV for growth is a concern, as any adverse impact on this segment could weigh heavily on the overall performance. Moreover, TTD derived 88% of its revenues from North America, while only 12% came from international markets. A weak international footprint limits TTD's total addressable market expansion potential. Increasing costs are likely to weigh on profitability. In the last reported quarter, total operating costs surged 21.4% year over year to $561.6 million. Expenses soared on account of continued investments in boosting platform capabilities, particularly platform operations. Higher costs can prove a drag on margins, especially if the revenue growth does not keep pace. Criteo's AI-driven Performance Media business and leading capabilities in the Retail Media segment bode well. Criteo's Commerce Media Platform includes demand-side (Commerce Growth and Commerce Max), supply-side (Commerce Grid and Commerce Yield), and data-driven identity solutions, making it a full-stack, vertically integrated platform. This helps the company capture value across the ad tech value chain and reduce overdependence on legacy retargeting. It has been transitioning from its legacy retargeting business toward high-growth areas, such as Retail Media and Commerce Audiences. Criteo's media spend was $4.3 billion in the last 12 months and $919 million in the first quarter. In the first quarter of 2025, Retail Media on-platform revenues grew 17% year over year, driven by strength in Retail Media onsite. It now has a partnership with 70% of the top 30 U.S. retailers, up from 65% last quarter. Three hundred new brands were onboarded in the first quarter, taking the total global brands count to over 3,800 for Retail Media. CRTO also launched onsite video solution which offers a full-funnel onsite advertising suite, into general availability. Launches with Office Depot and Costco Canada show that offsite Retail Media is scaling. Strong focus on strengthening relationships with global agencies and APIs is likely to drive more demand for its solutions. Within Performance Media, the company has rolled out 70 Commerce GO!, a new AI-powered automation and optimization toolset. This particular toolset is designed to launch high-performing campaigns in five clicks, driving faster advertiser onboarding. The highly competitive digital advertising landscape remains a key concern, with giants like Amazon and Google dominating multiple channels. However, Criteo sets itself apart by offering direct retailer access and a transparent, demand-driven platform built around first-party data. Backed by its extensive retail media network, proprietary Shopper Graph, and AI-powered performance engine, Criteo delivers measurable returns for brands and retailers, a value proposition it aims to strengthen further through ongoing platform innovation and strategic investment. Year to date, CRTO has lost 33.6% while TTD's decline stands at 37.1% amid macroeconomic uncertainties and effects of tariffs and inflation surrounding the industry. Image Source: Zacks Investment Research Valuation-wise, TTD is overvalued, as suggested by the Value Score of F, while CRTO has a Value Score of A, respectively. Image Source: Zacks Investment Research In terms of the forward 12-month price/earnings ratio, TTD shares are trading at 38.32X, higher than CRTO's 5.97X. Analysts have significantly revised their earnings estimates downward for CRTO's bottom line for the current quarter. Image Source: Zacks Investment Research While for TTD, there is a relatively lower downward revision. Image Source: Zacks Investment Research Currently, CRTO carries a Zacks Rank #2 (Buy), making the stock a stronger pick compared with TTD, which has a Zacks Rank #4 (Sell). Criteo stands out as the smarter pick due to its stronger valuation, focus on deepening partnerships, and expanding retail media footprint. If investors are seeking a tech stock with long-term growth potential, CRTO is a better pick. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Criteo S.A. (CRTO) : Free Stock Analysis Report The Trade Desk (TTD) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
20-05-2025
- Business
- Yahoo
Criteo Stock Plunges 29% YTD: Should You Buy the Dip or Wait?
Criteo CRTO shares have lost 29.2% in the year-to-date period, underperforming the Zacks Computer and Technology sector's decline of 1.4% and the S&P 500 index's return of 0.7%. The stock has also underperformed the Zacks Internet - Software and Services industry's growth of 17.2% in the same time stock's underperformance can be attributed to the effect of tariffs and inflation surrounding the industry. Criteo, although showing a dip at the moment, is poised for long-term growth even amid the macroeconomic uncertainties. The company is taking strategic steps to drive its prospects. Let's take a closer look at how CRTO is laying the foundation for sustained growth. Criteo has been transitioning from its legacy retargeting business toward high-growth areas, such as Retail Media and Commerce Audiences. In the first quarter of 2025, Retail Media on-platform revenues grew 21% year over year, driven by increased advertiser and retailer demand. Off-platform monetization also grew, supported by a 60% increase in supply partners. This can be attributed to the company's work with retailers like Michaels, Dollar Tree and Meijer, and its expansion of on-site monetization and self-service Audiences is another area of focus, with more than 250 brands onboarded to its expanded platform to date. With more first-party data integrations and growing demand for performance-based upper-funnel targeting, this business is positioned to scale throughout 2025. Criteo S.A. price-consensus-chart | Criteo S.A. Quote Criteo operates in a crowded space, competing with tech giants like Amazon AMZN, Google GOOGL, and The Trade Desk TTD. Amazon uses its shopper data to sell ads directly on its platform, while The Trade Desk helps brands buy ads across the open Internet with data-driven tools. Google rivals Criteo with ads across Search, YouTube and websites, using its vast user data. Shares of Amazon, Google and The Trade Desk have lost 6%, 12.1% and 35.1%, respectively, in the year-to-date period. While these players dominate in various channels, Criteo differentiates itself by providing retailer-direct access and a transparent, demand-driven platform that aligns with first-party data needs. With its broad retail network, proprietary Shopper Graph, and AI-based performance engine, Criteo offers measurable returns to brands and retailers, an advantage it plans to expand upon through continued platform investment and innovation. The Zacks Consensus Estimate for CRTO's 2025 earnings is currently pegged at $3.46 per share, which has been revised upward by 8.46% over the past 30 days. The estimate suggests a year-over-year increase of 16.98%. The consensus mark for revenues is pegged at $1.15 billion, indicating year-over-year growth of 2.41%.CRTO beat the Zacks Consensus Estimate for earnings in three of the trailing four quarters and missed once, with the average surprise being 45.42%. Criteo is now focusing on high-growth areas like Retail Media and Commerce Audiences. In the first quarter of 2025, the company expanded its advertiser base by 11% year over year and drove strong platform adoption across key retailers like Michaels and Meijer. New features such as dynamic sponsored products and video ads have strengthened its product suite, while recent wins in categories like grocery and home improvement reflect growing market traction. With more than 250 brands using Commerce Audiences and self-service adoption rising, Criteo is building momentum. Backed by a clear product roadmap, the company is positioning itself for long-term currently carries a Zacks Rank #2 (Buy) and has a Growth Score of A, a favorable combination that offers a strong investment opportunity, per the Zacks proprietary methodology. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Inc. (AMZN) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Criteo S.A. (CRTO) : Free Stock Analysis Report The Trade Desk (TTD) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Time of India
20-05-2025
- Time of India
Spring travelers seek novelty and exploration: Criteo study
HighlightsThe "Spring 2025 Travel Pulse" report by Criteo reveals a growing preference for adventurous and flexible travel options among spring travelers, moving away from routine trips. Economic factors are influencing travel decisions, with many travelers seeking budget-friendly accommodations and comparing multiple travel providers to secure the best deals. Regional variations in financial outlook show that optimism is highest in the United States and the United Kingdom, while Japan exhibits lower consumer confidence, suggesting a need for tailored offerings in different markets. A new global study, the " Spring 2025 Travel Pulse " by Criteo , reveals significant shifts in traveler behavior as the season unfolds. The report, drawing on data from numerous online travel agencies , airlines, and hotels, alongside insights from over 14,000 consumers, highlights a growing preference for adventurous and flexible travel options amidst economic considerations. One of the key findings indicates a move away from routine trips, with spring travelers increasingly opting for diverse experiences ranging from long-haul flights to camping excursions. This "adventure over routine" trend suggests a desire for novelty and exploration among those planning holidays in the first half of 2025. The report emphasizes that travel marketers who can mirror this enthusiasm with adaptable and innovative campaigns are poised for success. The study also sheds light on how economic factors are influencing travel decisions. While overall travel demand remains strong, a notable portion of travelers are actively seeking ways to optimize their spending. Strategies employed include considering less expensive destinations, choosing budget-friendly accommodations, and opting for shorter trip durations. Furthermore, a significant number of travelers reported comparing multiple travel providers (three or more) to secure the best deals. Interestingly, the report notes regional variations in financial outlook. Globally, 30% of travelers anticipate an improvement in their financial situation over the next year, while 39% expect no change. Optimism appears to be highest in the US and the UK, contrasting with lower confidence levels in Japan. This divergence suggests that travel providers should tailor their offerings and messaging to reflect the economic sentiment in different markets, perhaps emphasizing flexible options for more cautious travelers and premium upgrades where consumer confidence is higher. In conclusion, the "Spring 2025 Travel Pulse" paints a picture of a dynamic travel landscape where the desire for unique experiences intersects with a pragmatic approach to budgeting. Travel industry players who understand and respond to these evolving preferences are likely to capture the attention and business of today's spring travelers.
Yahoo
15-05-2025
- Business
- Yahoo
CRTO & RNG Look Good Despite Software & Services Weakness
The Internet-Software & Services industry is highly correlated to the economy; consequently, estimates are moving down as tariffs, inflation and interest rate decisions increase economic uncertainty. The industry appears to be in cost-saving mode as operating expenses are coming down to generate profit despite revenue softness. Capital investments are also being limited, barring a couple of companies. In this background, companies like Criteo (CRTO) and RingCentral (RNG) are shining through for a number of reasons. First, they are leveraging AI, which is translating to revenue growth and helping offset the ongoing economic weakness. Second, they have developed systems of client retention through subscriptions and platforms. Being the backbone of the digital economy, it's hard to see this industry doing badly over the long term. The diversity of players in this group leads to some dissonance. Valuations have been improving since April. About the Industry The Internet Software & Services industry is relatively small, primarily involved in enabling platforms, networks, solutions and services for online businesses, and facilitating customer interaction and use of Internet based services. Top Themes Driving the Industry The level of technology adoption by businesses impacts growth. While some companies have already built platforms facilitating the development and use of artificial intelligence, others are scrambling to catch up in order to stay competitive. This is further accelerating the adoption of technology that can help collect and analyze data, whether on company premises or in the cloud. Additionally, today we have many more cloud-first companies than ever before. Therefore, there is steadily increasing demand for software and services delivered through the Internet. Despite recent rate cuts, the economy continues to slow down, which isn't good news for an industry that thrives on strong economic growth. No matter what the other variables – and there are many, considering the motley crowd that makes up this group – an economic slowdown always leads customers to make do with less, i.e. reduce expenditures on software and services. Additionally, geopolitical tensions in Europe and the Middle East have a bearing on oil prices and supply chains, and therefore, contribute to the volatility and uncertainty within the economies. The decision of the U.S. government to first impose tariffs and then alleviate them, along with its trading partners' retaliatory tariffs, adds further complexity to the operating environment. This means that the outlook for 2025 is a bit cloudy. Given the colorful international politics and the resultant volatility in international markets, there is notable impact on the performance of each player. The fact that they also serve a very broad spectrum of markets also makes it difficult to predict specific outcomes for the group, as a whole. Players increasingly prefer a subscription-based model, which brings relative stability to their businesses. This works especially well when the companies have critical offerings. The ability to retain subscribers and raise prices as necessary is proving to be the key to success in the current environment. The higher volume of business being operated through the cloud and the increasing demand for enabling software and services involves infrastructure buildout, which increases costs for players. This causes great fluctuations in profitability as new infrastructure is depreciated and fresh debt is serviced. So even for those players that see revenue growth accelerate, profitability is often a challenge. That said, most of the companies in this industry have been working down debt over the last few years with a positive impact on results. Zacks Industry Rank Indicates Limited Prospects The Zacks Internet – Software & Services industry is housed within the broader Zacks Computer and Technology sector. It carries a Zacks Industry Rank #203, which places it in the bottom 17% of nearly 250 Zacks classified industries. The group's Zacks Industry Rank, which is basically the average of the Zacks Rank of all the member stocks, indicates that the growth prospects are deteriorating. Our research shows that the top 50% of the Zacks-ranked industries outperforms the bottom 50% by a factor of more than 2 to 1. The aggregate estimate revision trend warrants some caution. That is because the estimates for both fiscal years 2025 and 2026 have moved around quite a bit and have now taken a downward turn. The 2025 estimate was more or less steady through July 2024 before dipping in August. It picked up again through December before dropping back down thereafter. The 2026 estimate was also relatively steady through July, dropping sharply in August and picking up again from October before dropping sharply again this month. Net-net, the 2025 estimate is down 23.7% over the past year while he 2026 estimate is down 21.2%. 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 valuation picture. Industry's Stock Market Performance Is Strong The Zacks Internet – Software & Services Industry lagged both the broader Zacks Computer and Technology Sector and the S&P 500 through most of 2024, reversing the trend this year. Overall, the industry returned 20.5% over the past year compared with the broader sector's return of 11.7% and the S&P 500's 11.0%. One-Year Price Performance Image Source: Zacks Investment Research Industry Is Somewhat Overvalued On the basis of forward 12-month price-to-earnings (P/E) ratio, we see that the industry is currently trading at a 24.96X multiple, which is a 15.2% premium to the S&P 500 and a 2.2% discount to the technology sector. Technology stocks usually trade at a higher multiple because investors pay a higher premium for innovation. In this case, it is also worth noting that the industry is trading at its highest multiple over the past year. The industry has traded in the range of 16.95X to 24.96X and a median level of 19.14X over the past year, as the chart below shows. Forward 12 Month Price-to-Earnings (P/E) Ratio Image Source: Zacks Investment Research 2 Stocks Worth Considering Criteo S.A. (CRTO): Paris-based Criteo S.A. provides a commerce media platform delivering marketing and monetization services in North and South America, Europe, the Middle East, Africa and Asia-Pacific. Its unified, AI-driven platform directly connects advertisers with retailers and publishers to drive commerce on retailer sites and on the open Internet. The company's strategy is to harness AI to expand its reach across audiences, seeking to expand its ecosystem across advertisers, retailers and third-party platforms, using the commerce dataset to feed its AI models. As advertiser budgets are sensitive to macroeconomic factors like the geopolitical conflicts in Ukraine and the Middle East, as well as things like inflation and interest rates back home, this market hasn't done exceptionally well in the past year. However, Criteo was able to leverage its Retail Media platform to offset some of this softness. Despite the loss of a large customer that is expected to hurt results from the fourth quarter of 2025, the company has a depth of offerings to continue to add many more. Existing customer spending soared in the last quarter, with ex-TAC (traffic acquisition costs) same retailer contribution retention at 120%. As brands and retailers continue to onboard its platform, networking effects kick in, helping results. Its client retention remained close to 90% in the last quarter. Overall Retail Media ex-TAC contribution growth was 18%. Performance media ex-TAC contribution growth was a more sedate 4%, helped by growing strength in its AI-powered commerce solution. Shares of this Zacks Rank #2 (Buy) company have lost 20.5% over the past year. The Zacks Consensus Estimate for 2025 is down -12 cents (2.7%) in the last 30 days. The 2026 earnings estimate is down -37 cents (7.7%). Analysts expect sales to increase +2.4% this year with earnings declining -3.9%. Earnings are currently expected to grow +0.9% the following year on the back of +2.7% revenue growth. Price and Consensus: CRTO Image Source: Zacks Investment Research RingCentral Inc. (RNG): Belmont, CA-based RingCentral's AI-powered product portfolio includes the Unified Communications as a Service (UCaaS), Contact Center as a Service (CCaaS), Video & Events, and RingSense AI solutions. Its success is as much a function of its innovative communications and collaboration solutions as its diverse range of strategic partners, global service providers, channel partners and third-party developers. The company's new AI-based solutions are doing extremely well and management has said that in the last quarter, average recurring revenue ARR exceeded $2.5 billion. The newly-launched AI receptionist (AIR) operates as a digital phone assistant, automatically recording key details on calls, including decisions and action items; and generates context aware chat messages in real time, as well as context-based SMS. There are already 1000 activated customers on AIR. Other highlights of the quarter included its integration into the Salesforce CRM ecosystem and big customer wins such as Cox Communications and Altafiber (previously Cincinnati Bell). Shares of this Zacks Rank #3 (Hold) company have lost 26.5% over the past year. The Zacks Consensus Estimate for 2025 is level with the estimate 30 days ago while the 2026 earnings estimate is down 3 cents. Analysts are looking for revenue growth of 4.6% in 2025 and 5.8% in 2026, with earnings expected to grow a respective 13.5% and 11.2%. Price and Consensus: RNG Image Source: Zacks Investment Research Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Ringcentral, Inc. (RNG) : Free Stock Analysis Report Criteo S.A. (CRTO) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
