Shares of Zeta Global Holdings (ZETA) have struggled this year, but a breakout could be on the horizon thanks to strong fundamentals, a bullish technical setup, and insider buying that signals executive confidence.
“ZETA is breaking out and is set up to have a larger run than OSCR,” wrote popular trader Mike Investing, referencing Oscar Health’s recent rally.
For context, Oscar Health (OSCR) broke out in mid-April and is now up 45% year-to-date.
In contrast, ZETA is down more than 13% since the start of the year and has fallen 34% from its February peak above $24 per share. The stock currently trades at $16.25, giving it a market cap of $3.8 billion.
Mike Investing pointed to Zeta’s 42% year-over-year revenue growth, $360 million in cash reserves, and CEO David Steinberg’s multimillion-dollar stock purchases as key reasons for a bullish outlook.
In November, CEO David Steinberg and other executives purchased a combined $3 million worth of Zeta’s Class A common stock — a move aimed at signaling confidence in the company’s long-term prospects.
While ZETA’s stock has yet to reflect early optimism, the company may be on the verge of a turnaround.
Zeta’s growth outlook
Zeta Global offers marketing and data analytics services, increasingly integrating AI solutions to help companies acquire and grow their customer base.
The company wrapped up a strong fiscal 2024, reporting $1.01 billion in revenue, a 38% increase over the previous year. While Zeta remained unprofitable, with a net loss of $69.8 million, that figure marked a 63% improvement year-over-year.
In the final quarter, Zeta boosted its customer count by 17% and generated $44 million in operating cash flow, contributing to $134 million for the full year. Fiscal 2024 also marked the company’s sixth straight year of at least 20% revenue growth.
That momentum has carried into 2025, with first-quarter revenue reaching $264 million, a 36% increase from the same period last year. In terms of guidance, Zeta projects revenue will surpass $1.23 billion this year.
Reflecting that optimism, 12 out of 15 analysts tracked by The Wall Street Journal have given ZETA stock a “Buy” rating. The other three analysts have given the stock a “Hold” rating.
Equity research analysts at William Blair recently reaffirmed their positive outlook on Zeta Global, citing strong business fundamentals and growth opportunities as reasons to expect the stock to outperform.
They believe ZETA is currently undervalued, particularly given its robust organic revenue growth.
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