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Let's face it… things got a little rough in the stock market last week – thanks to what seemed to be a never-ending stream of breaking news out of Washington.
Ironically, media stocks suffered, too.
But there's one stock that could drive the whole sector higher…
And based on the numbers, it's the best stock to buy right now.
Even though media advertising sales fell sharply in the first quarter compared to the first quarter last year, digital media is becoming the top marketing and advertising means for companies all over the country. In fact, it surpassed TV ad spending in 2016 and accounts for roughly 37% of all ad spending in the United States. Additionally, mobile advertising spending is expected to reach $87 billion in the next three years, with revenue expected to reach $116 billion within the next four years.
So with all of this spending at this pace, you're looking at some pretty solid profit opportunities on some pretty solid candidates. Here's a list of the top 14 to consider adding to your portfolio, according to the data from my proprietary tools:
Each one is trading at or near their 52-week highs and will continue to climb from the momentum these highs produce (and in case you've heard otherwise, this is why buying stocks at 52-week highs could give you the easiest profits).
Now as you can see – and as I mentioned earlier – there's one that outperforms the others: InnerWorkings Inc. (Nasdaq: INWK):
INWK is a top marketing firm that services a wide range of Fortune 500 media companies as well as retail, financial, hospitality, automotive, healthcare, and others. It met earnings expectations for the first quarter and fell just short of revenue expectations. Despite that, it's been steadily climbing:
As far as trading ideas, a long call or a long-term anticipation security (LEAP) option would be your best considerations, especially given digital media spending and revenue expectations over the next few years. This is also one you could consider holding in your portfolio as a longer-term investment.
Just be sure to talk to your broker first.
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About the Author
Tom Gentile is one of the world's foremost authorities on stock, futures and options trading.
With more than 25 years' experience trading stocks, futures, and options, Tom's style of trading systems and strategies are designed to help individual investors propel themselves past 99 percent of the trading crowd.