Ziff Davis, Inc. (ZD) Stock Analysis

Why this analysis is different

• A sector-relative MoonshotScore — five pillars (business quality, financial safety, valuation, growth durability, momentum) re-ranked nightly against the full universe of US-listed common stocks.
• An AI Council read across up to eight perspectives — value, macro, quantitative, and momentum lenses — that shows where they disagree instead of averaging the tension away.
• Figures come straight from FMP and Yahoo Finance filings data. The AI writes the narrative around the numbers — it never edits the numbers.

Ziff Davis, Inc. (ZD) Media & Communications Profile

Ziff Davis, Inc. delivers internet information and services through its Digital Media and Cybersecurity & Martech segments. The company's diverse portfolio of web properties and cloud-based subscription services positions it uniquely within the advertising agencies industry, serving both consumer and business markets across technology, shopping, entertainment, and health.

What Is the Investment Thesis for ZD?

Ziff Davis, Inc. presents a mixed investment thesis. The company's diverse digital media portfolio and expansion into cybersecurity and martech offer growth opportunities, evidenced by a gross margin of 73.8%. However, a relatively high P/E ratio of 42.9, compared to the industry average, suggests a premium valuation. The company's ability to leverage its established brands like IGN and RetailMeNot, along with its cloud-based subscription services, could drive future revenue growth. Investors should monitor the company's ability to maintain profitability, given its current profit margin of 3.3%, and navigate the competitive landscape in the digital media and cybersecurity sectors. Key catalysts include successful integration of acquired businesses and expansion of its subscription-based services.

Based on FMP financials and quantitative analysis

ZD Key Highlights

Market capitalization of $2.04B reflects its position in the digital media and cybersecurity sectors.

• Gross Margin of 73.8% indicates strong pricing power and efficient cost management.
• Profit Margin of 3.3% suggests potential for improvement through operational efficiencies and revenue diversification.
• P/E ratio of 42.9 indicates a premium valuation compared to industry peers.
• Beta of 1.07 suggests the stock's volatility is similar to the overall market.

Who Are ZD's Competitors?

ZD is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance

What Are ZD's Key Strengths?

Diverse portfolio of web properties and apps.

• Strong brand recognition and reputation.
• Cloud-based subscription services for cybersecurity and martech.
• Experienced management team.

What Are ZD's Weaknesses?

Reliance on advertising revenue.

• Relatively low profit margin.
• Intense competition in the digital media and cybersecurity sectors.
• Potential vulnerability to cybersecurity threats.

What Could Drive ZD Stock Higher?

Expansion of cloud-based subscription services in cybersecurity and martech.

• Continued growth in digital advertising revenue through its web properties.
• Potential acquisitions of complementary businesses in the digital media and technology sectors.
• Strategic partnerships to expand its reach and product offerings.

What Are the Key Risks for ZD?

Rich valuation — a P/E of 42.9 runs well above the Communication Services sector’s ~18x, leaving little room for a miss.

• Economic downturn impacting advertising spending.
• Intense competition in the digital media and cybersecurity sectors.
• Changing consumer preferences and technological advancements.
• Regulatory changes affecting data privacy and cybersecurity.

What Are the Growth Opportunities for ZD?

• Expansion of Cybersecurity and Martech Services: Ziff Davis can capitalize on the growing demand for cybersecurity and marketing technology solutions. The global cybersecurity market is projected to reach $345.4 billion by 2026, offering a significant growth opportunity for the company's cloud-based subscription services. By focusing on product innovation and strategic partnerships, Ziff Davis can expand its market share and drive revenue growth in this segment.
• Leveraging Digital Media Portfolio: Ziff Davis's diverse portfolio of web properties, including IGN, RetailMeNot, and PCMag, provides a strong foundation for growth. By enhancing user engagement, optimizing content delivery, and expanding into new content verticals, the company can attract a larger audience and increase advertising revenue. The digital advertising market is expected to continue its growth trajectory, presenting ample opportunities for Ziff Davis to capitalize on its established brands.
• Strategic Acquisitions and Partnerships: Ziff Davis can pursue strategic acquisitions and partnerships to expand its product offerings, geographic reach, and market share. By acquiring complementary businesses in the digital media, cybersecurity, and martech sectors, the company can accelerate its growth and enhance its competitive position. Successful integration of acquired businesses will be crucial for realizing synergies and maximizing returns.
• Enhancing Data Analytics Capabilities: Ziff Davis can invest in data analytics capabilities to gain deeper insights into user behavior, optimize advertising campaigns, and personalize content delivery. By leveraging data analytics, the company can improve its targeting accuracy, increase advertising effectiveness, and enhance user engagement. This will enable Ziff Davis to attract more advertisers and drive revenue growth.
• International Expansion: Ziff Davis can expand its presence in international markets to tap into new growth opportunities. By adapting its products and services to local market conditions and establishing strategic partnerships with local players, the company can penetrate new markets and increase its global reach. The international digital media and cybersecurity markets offer significant growth potential for Ziff Davis.

What Are ZD's Competitive Advantages?

• Brand recognition and reputation of established web properties like IGN and PCMag.
• Diverse portfolio of web properties catering to various interests and demographics.
• Proprietary technology and data analytics capabilities.
• Strong relationships with advertisers and retailers.

What Does ZD Do?

Ziff Davis, Inc., established in 2014 and headquartered in New York City, provides internet information and services across the United States, Canada, Ireland, and internationally. Formerly known as j2 Global, Inc. until its name change in October 2021, the company operates through two primary segments: Digital Media, and Cybersecurity and Martech. The Digital Media segment encompasses a wide array of web properties and applications, including IGN, RetailMeNot, Mashable, PCMag, Humble Bundle, Speedtest, Offers, Black Friday, MedPageToday, Everyday Health, BabyCenter, and What to Expect. These platforms cater to diverse interests within the technology, shopping, entertainment, and health and wellness sectors. The Cybersecurity and Martech segment focuses on delivering cloud-based subscription services to consumers and businesses, offering solutions in cybersecurity, privacy, and marketing technology. With a workforce of 3,800 employees, Ziff Davis continues to evolve its offerings to meet the changing demands of the digital landscape, leveraging its established brands and technological capabilities.

What Products and Services Does ZD Offer?

• Operates a portfolio of web properties and apps, including IGN, RetailMeNot, and PCMag.
• Provides cloud-based subscription services for cybersecurity, privacy, and marketing technology.
• Offers internet information and services to consumers and businesses.
• Connects consumers with deals and discounts through platforms like RetailMeNot and Black Friday.
• Delivers technology news and reviews through PCMag and other tech-focused sites.
• Provides health and wellness information through MedPageToday, Everyday Health, BabyCenter, and What to Expect.

How Does ZD Make Money?

• Generates revenue through advertising on its web properties and apps.
• Earns subscription fees from its cloud-based cybersecurity and martech services.
• Partnerships with retailers to drive sales and earn commissions.
• Affiliate marketing through platforms like RetailMeNot.

What Industry Does ZD Operate In?

Ziff Davis operates within the rapidly evolving advertising agencies industry, which is experiencing a shift towards digital platforms and data-driven advertising solutions. The industry is characterized by intense competition, with companies vying for market share through innovative technologies and targeted advertising strategies. Ziff Davis's diverse portfolio of web properties and cloud-based services positions it to capitalize on the growing demand for digital advertising and cybersecurity solutions. The company's ability to adapt to changing consumer preferences and technological advancements will be crucial for maintaining its competitive edge.

Who Are ZD's Key Customers?

• Consumers seeking information, entertainment, and deals online.
• Businesses looking for cybersecurity, privacy, and marketing technology solutions.
• Advertisers seeking to reach targeted audiences through Ziff Davis's web properties.
• Retailers partnering with Ziff Davis to promote their products and services.

Company Profile

Ziff Davis, Inc. operates in the Advertising Agencies industry within the Communication Services sector. It is headquartered in New York City, US. The company is led by CEO Vivek R. Shah. ZD has traded publicly since 1999.

Return on equity for Ziff Davis, Inc. stands at 34.3%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 16.1%, showing how much profit it generates from its asset base. ZD trades at a trailing price-to-earnings ratio of 42.93, above the Communication Services sector average of ~18x. Its free cash flow yield is 15.5%, a gauge of the cash the business throws off relative to its market value. A current ratio of 2.16 indicates the company holds enough short-term assets to cover its near-term obligations. Its earnings yield is 31.9%, the inverse of the P/E and a quick read on earnings relative to price.

ZD Valuation & Market Position

With a $2.04B market cap, Ziff Davis, Inc. sits in the mid-cap segment of the market. Relative to its peer group, ZD's quantitative score of 98/100 is above the peer average of 67/100.

Quarterly Financial Performance: Ziff Davis, Inc.

Revenue for Ziff Davis, Inc. came in at $286.7M during Q2 2026, a 7.1% improvement versus the preceding quarter. The company recorded net income of $624.5M, with diluted EPS of $17.16. Quarter-over-quarter revenue has been mixed, typical for a mid-cap company operating in Communication Services. Across the four most recent quarters, ZD averaged $4.42 in diluted EPS.

Ziff Davis, Inc.'s Piotroski F-Score is 7/9, a 9-point checklist of profitability, leverage and efficiency — signaling solid underlying fundamentals. Its Altman Z-Score of 2.03 places it in the grey zone, a middle ground that warrants monitoring.

Ziff Davis, Inc. has beaten Wall Street's EPS estimate in 5 of its last 8 reported quarters — more hits than misses. Reported results have landed about 4.7% above estimates on average.

Wall Street analysts project Ziff Davis, Inc. revenue of about $1.22B for fiscal 2026, with EPS near $5.07. The estimate reflects 3 contributing analysts.

Over the past six months, Ziff Davis, Inc. insiders filed 23 SEC Form 4 transactions — 7 sales and 16 purchases. On net that is roughly 186K shares acquired (about $903K) — insiders putting money in tends to read as conviction.

ZD Financials

ZD Latest News

ZD Analyst Consensus

ZD MoonshotScore

ZD Communication Services Stock FAQ

Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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