Publicis to enter into a $4.4 billion deal with Epsilon
French advertising giant, Publicis, is finalizing its deal to pay about $4.4 billion to Alliance Data Systems Corporation’s (ADS) Epsilon business to boost its digital marketing strategies and to help clients better personalize their advertising.
According to the terms of the deal, Publicis would acquire ADS’s Epsilon business for a net purchase price of $3.95 billion after a tax step-up, with a total cash consideration of $4.4 billion. Publicis would continue to form a strategic partnership with Alliance Data’s remaining business.
The deal is in response to huge growth of the digital advertising industry in recent times, as well as increasing dominance of players like Facebook (FB) and Google (GOOG, GOOGL). With digital ad spending in U.S. expected to surpass traditional ad spending for the first time in 2019, by 2023, digital ad spending is expected to account for more than two-thirds of all media spending.
In light of these market imperatives, the deal is crucial as it gives Publicis access to Epsilon’s data capabilities. With more than 250 million unique U.S. customers identified in Epsilon’s database, Publicis believes that it can integrate this data with its own assets to build a robust client profile.
The deal is not unprecedented as previously major ad holding companies like Interpublic Group of Cos. and Dentsu Aegis Network have also insourced data from providers. Interpublic Group of Cos. acquired Acxiom’s Marketing Solutions for $2.3 billion last summer, while Dentsu Aegis Network bought a majority stake in data marketing company Merkle in 2016. In today’s digital advertising market, such data insourcing also helps grapple with the privacy issues attached to customer data sourcing.
BFH sees its Stochastic Oscillator climbs out of oversold territory
On April 09, 2025, the Stochastic Oscillator for BFH moved out of oversold territory and this could be a bullish sign for the stock. Traders may want to buy the stock or buy call options. Tickeron's A.I.dvisor looked at 71 instances where the indicator left the oversold zone. In of the 71 cases the stock moved higher in the following days. This puts the odds of a move higher at over .
Technical Analysis (Indicators)
Bullish Trend Analysis
The RSI Oscillator points to a transition from a downward trend to an upward trend -- in cases where BFH's RSI Indicator exited the oversold zone, of 28 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Momentum Indicator moved above the 0 level on April 17, 2025. You may want to consider a long position or call options on BFH as a result. In of 82 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for BFH just turned positive on April 16, 2025. Looking at past instances where BFH's MACD turned positive, the stock continued to rise in of 45 cases over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where BFH advanced for three days, in of 284 cases, the price rose further within the following month. The odds of a continued upward trend are .
BFH may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Bearish Trend Analysis
The 50-day moving average for BFH moved below the 200-day moving average on April 09, 2025. This could be a long-term bearish signal for the stock as the stock shifts to an downward trend.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where BFH declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Aroon Indicator for BFH entered a downward trend on April 07, 2025. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating fairly steady price growth. BFH’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. BFH’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 68, placing this stock worse than average.
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (0.609) is normal, around the industry mean (4.961). P/E Ratio (2.441) is within average values for comparable stocks, (55.984). Projected Growth (PEG Ratio) (2.559) is also within normal values, averaging (3.039). Dividend Yield (0.023) settles around the average of (0.042) among similar stocks. P/S Ratio (0.419) is also within normal values, averaging (3.471).
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