Zeta Global soars 67% following InvestingPro’s April Fair Value alert

Published 07/08/2025, 12:06
Zeta Global soars 67% following InvestingPro’s April Fair Value alert

In early April 2025, InvestingPro’s Fair Value models identified a significant mispricing in Zeta Global Holdings Corp. (NYSE:ZETA), an AI-powered marketing technology company. The subsequent price movement has validated this analysis, delivering a remarkable 67% return in just four months. For investors seeking similar opportunities, InvestingPro’s Most undervalued list continues to identify potentially undervalued stocks across markets.

Zeta Global leverages artificial intelligence and machine learning to provide data-driven marketing solutions to enterprise clients. When InvestingPro’s models flagged the stock as undervalued, ZETA was trading at $12.10, despite showing strong fundamental indicators. The company had demonstrated consistent revenue growth and was expanding its base of high-value customers, though the stock had experienced weakness in previous months with predominantly negative returns.

The Fair Value analysis proved prescient as ZETA’s share price climbed steadily, reaching $20.23 by early August 2025. This appreciation was supported by impressive fundamental improvements, including revenue growth from $1.07 billion to $1.16 billion and a substantial EBITDA expansion from $0.99 million to $26.90 million. The company’s earnings per share also improved from -$0.26 to -$0.18 during this period.

Recent developments have further validated InvestingPro’s analysis. Zeta Global’s Q2 2025 earnings exceeded forecasts, leading to raised guidance and positive analyst coverage. RBC Capital Markets and Truist Securities maintained bullish ratings with price targets of $25 and $34, respectively, suggesting potential for additional upside.

InvestingPro’s Fair Value methodology combines multiple valuation approaches, including discounted cash flow analysis, comparable company metrics, and market-based indicators. This comprehensive approach helps investors identify stocks trading significantly below their intrinsic value, as demonstrated in this case with ZETA’s initial estimated upside of 51.82%.

The success of this Fair Value call exemplifies the power of data-driven investment analysis. InvestingPro offers subscribers access to these valuable insights, along with real-time Fair Value alerts, financial health scores, and proprietary analysis tools. As markets continue to evolve, having access to sophisticated valuation tools becomes increasingly crucial for making informed investment decisions.

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