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Is Interpublic Group (IPG) a Great Value Stock Right Now?

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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

One company value investors might notice is Interpublic Group (IPG - Free Report) . IPG is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 13.42, while its industry has an average P/E of 14.14. Over the last 12 months, IPG's Forward P/E has been as high as 15.88 and as low as 9.48, with a median of 13.07.

We also note that IPG holds a PEG ratio of 1.31. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. IPG's PEG compares to its industry's average PEG of 1.45. Over the last 12 months, IPG's PEG has been as high as 10.09 and as low as 1.30, with a median of 6.19.

Finally, we should also recognize that IPG has a P/CF ratio of 15.46. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. IPG's current P/CF looks attractive when compared to its industry's average P/CF of 25.83. IPG's P/CF has been as high as 16.89 and as low as 6.99, with a median of 13.52, all within the past year.

Value investors will likely look at more than just these metrics, but the above data helps show that Interpublic Group is likely undervalued currently. And when considering the strength of its earnings outlook, IPG sticks out at as one of the market's strongest value stocks.


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