DoubleVerify is the IBD Stock of the Day as the specialist in digital advertising verification clears a downtrend amid a consolidation. DV stock has gained 38% in 2023 as Wall Street analysts project strong revenue and earnings growth.
On the stock market today, DoubleVerify gained a fraction to 30.64.
In its base, DV stock has an early entry point of 31.41 on a weekly chart.
First-quarter earnings for DoubleVerify are due on May 10. Investors may want to be cautious ahead of the earnings report. One strategy around earnings would use call options.
DV Stock: Earnings, Revenue Growth
New York City-based DoubleVerify provides digital media measurement and data analytics for internet TV and social media platforms. The company reduces ad fraud by verifying advertising views and engagement by consumers online.
It also promises to ensure placement of ads in safe and suitable environments for brands.
"With a full product suite of pre/post-bid solutions across social, connected TV, and retail media, DV helps clients better target/measure ad campaigns, while protecting brand safety," Truist Securities analyst Youssef Squali said in a recent note to clients.
Founded in 2017, DoubleVerify competes with companies like Comscore and Integral Ad Science in the measurement segment.
For full-year 2023, analysts polled by FactSet predict earnings of 63 cents a share, up 152% from a year earlier. Revenue is expected to climb 23% to $557.5 million.
TikTok Is A New Customer
DoubleVerify launched an initial public offering in April 2021 with shares priced at 27. After forming an IPO base, DV stock spiked to a record-high 48.42 in June 2021.
DoubleVerify has integrated its software across the digital advertising ecosystem, including programmatic platforms, social media channels and digital publishers.
Its two biggest social platforms are Facebook/Instagram, part of Meta Platforms, and YouTube. Meanwhile, TikTok is a new customer.
Netflix's new ad-supported service also could provide upside, say analysts.
"We see numerous growth drivers for the business including connected TV," RBC Capital analyst Matthew Swanson said in a note. "The company now is the only verification company that covers all of the top ad-supported connected TV providers. Also, we see a near-term opportunity on volume as (ad-supported) services ramp."
DV Stock: Relative Strength Rating
Institutional ownership of DV stock is strong, with heavy mutual fund buying.
DoubleVerify recently announced a secondary offering, with Providence VII U.S. Holdings and Providence Butternut Co-Investment selling shares.
DV stock's Relative Strength Rating stands at 93 out of a best-possible 99, according to IBD Stock Checkup.
DoubleVerify has an Accumulation/Distribution Rating of B+. The rating analyzes price and volume changes in a stock over the past 13 weeks of trading.
The rating, on a scale of A+ to E, measures institutional buying and selling.
Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on 5G wireless, artificial intelligence, cybersecurity and cloud computing.
