Zeta Global Holdings Corp. ZETA stock has shown remarkable growth in the year-to-date period. The stock has skyrocketed 146.4%, outperforming the industry's 57.4% rally and the Zacks S&P 500 composite's 30.3% growth.

ZETA’s performance is significantly higher than that of its competitors, Freshworks Inc. FRSH and Temenos AG TMSNY. In the year-to-date period, FRSH and TMSNY have declined 28.1% and 17.5%, respectively.

YTD Price Performance

Image Source: Zacks Investment Research

As of the last trading session, the stock closed at $21.7, 43.2% down from the 52-week high of $38.2.

Given the rise in the ZETA stock, investors might be appealed to buy it. However, the prevailing question is whether it is the correct time to buy the stock. Let us find out.

Omnicom’s IPG Buyout Creates Opportunity for ZETA

Zeta Global is a marketing technology company that specializes in AI-powered marketing solutions. The company offers tools and platforms to companies like Omnicom and Interpublic to enhance their marketing plans. OMC and IPG are ZETA’s partners, and the company’s offerings complement the offerings of these traditional advertising and marketing agencies.

On Monday, Omnicom announced the acquisition of Interpublic. This deal is anticipated to close in the second half of 2025. Given the services provided by Zeta’s platform and the existing partnership with Omnicom and Interpublic, we expect this acquisition to lead to more business opportunities for ZETA. One reason that can benefit ZETA is the huge data infrastructure of the combined Omnicom-Interpublic company. Zeta Global, using its advanced AI tools, can leverage this data to provide more exact customer insights. This could lead to more effective marketing campaigns and enhanced customer experiences.

Another factor that could assist Zeta Global is the financial strength of the combined company. It can pave a path to rising scale and buying power. Furthermore, it could help the company to access a larger pool of customers and resources since the combined company could leverage its robust financial position to increase its investments in technology and AI.

LiveIntent Buyout to Boost Zeta Global’s Performance

Zeta Global acquired LiveIntent in October for $250 million, of which $77.5 million was paid in cash and the rest in stock. This buyout is anticipated to augment ZETA’s financial performance this year, with expected revenues of $76 million and adjusted EBITDA of $15.5 million.

Apart from the financial gains, the acquisition will enhance Zeta Global’s resolution capabilities due to LiveIntent’s more than 235 million unique hashed email addresses per month. The acquired company can be enough for Zeta Global to capitalize on the combined Omnicom-Interpublic company, as it could lead to more precise targeting and bespoke marketing campaigns.

ZETA’s Robust Returns on Capital

Return on equity (ROE), a measure of profitability, reflects how effectively a company uses its shareholders' investments to generate earnings. ZETA’s trailing 12-month ROE is 31.5% compared with the industry’s average of 3.4%.

Image Source: Zacks Investment Research

Zeta Global’s Liquidity Beats Industry

The company has a healthy liquidity position, with the current ratio of 3.32 at the end of the third quarter of 2024, higher than the industry’s 2.16. It has increased 67.7% from the preceding quarter and 100% from the year-ago quarter. A current ratio above 1 suggests that the company can easily pay off its short-term obligations.

Image Source: Zacks Investment Research

ZETA’s Strong Top & Bottom-Line Prospects

The Zacks Consensus Estimate for the company’s 2024 revenues is pegged at $986.1 million, suggesting 35.3% growth from the year-ago reported level. For 2025, the top line is expected to increase 23.4% year over year.

The consensus estimate for earnings in 2024 is pegged at 60 cents per share, suggesting a 71.4% increase from the prior year's actual. For 2025, the bottom line is anticipated to rise 30.9% on a year-over-year basis.

Jump the Bandwagon: Buy ZETA

Zeta Global can leverage the Omnicom buyout deal of Interpublic to scale and improve its buying power. Further, LiveIntent’s acquisition can improve ZETA’s top line and margins. The stock provides returns on capital greater than the industry and has a healthy liquidity position. Its strong top and bottom-line prospects look encouraging.
The compelling factors leading to ZETA’s growth make it a worthwhile addition to your long-term portfolio. Hence, we recommend investors grab the opportunity by buying the stock today.

ZETA currently has a Zacks Rank #2 (Buy). 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

Freshworks Inc. (FRSH) : Free Stock Analysis Report

Zeta Global Holdings Corp. (ZETA) : Free Stock Analysis Report

TEMENOS GROUP (TMSNY) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research