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Shares of The Interpublic Group of Companies, Inc. (IPG - Free Report) scaled a 52-week high of $29.65 in the trading session on Mar 11, before closing a tad lower at $29.29.
The company’s shares have charted a solid trajectory in recent times, appreciating 91.9% over the past year, much ahead of 59.4% growth of the industry it belongs to and 59.8% rally of the Zacks S&P 500 composite.
Notably, Interpublic has witnessed a 19.3% rise in share price since it posted fourth-quarter 2020 results.
Let’s find out what’s supporting the uptick.
Dividend Hike
Interpublic announced that its board of directors declared a cash dividend of 27 cents per share, up 5.9% from its prior dividend of 25.5 cents. The raised dividend will be paid on Mar 15, to its shareholders of record as of Mar 1.
Previously, during 2020, 2019 and 2018, Interpublic paid $398.1 million, $363.1 million and $322.1 million in dividends, respectively. Such moves indicate the company’s commitment to create value for shareholders and also underline its confidence in its business. These shareholder-friendly initiatives not only instill investors’ confidence, but also positively impact earnings per share.
Diversified Business Model
Interpublic came up with better-than-expected earnings and revenue performances in the last seven quarters. The company’s digital capabilities, diversified business model and geographic reach offer a distinctive competitive advantage. The company is expected to achieve targeted levels in the coming quarters based on diversification across emerging regions and collaboration/integration across agencies through technological improvement. Moreover, the company continues to look for strategic investments/acquisitions to expand in high-growth regions and key world markets.
Contributions From Acquisitions
Acquisitions, over time, have helped Interpublic expand its product portfolio, thereby trying to stand up to the rapidly-changing marketing services and media prospects. In recent years, Interpublic has acquired agencies across the marketing spectrum, which include firms specialized in digitalization, mobile marketing, social media, healthcare communications and public relations, as well as agencies with full-service capabilities.
Zacks Rank and Stocks to Consider
Interpublic currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the broader Zacks Business Services sector are CoreLogic , Gartner (IT - Free Report) and NV5 Global (NVEE - Free Report) , each carrying a Zacks Rank #2.
The long-term expected earnings per share (three to five years) growth rate for CoreLogic, Gartner and NV5 Global is 10%, 13.5% and 16.8%, respectively.
5G Revolution: 3 Stocks to Make Your Move
With super high data speed, it will make current cell phones obsolete and unlock the full potential of big data, cloud computing, and artificial intelligence. In the next few years this industry is predicted to create 22 million jobs and a stunning $12.3 trillion in revenue.
Today you have an historic chance to pursue almost unimaginable gains like Microsoft, Netflix, and Apple in their early phases. Zacks has released a Special Report that reveals our . . .
Image: Bigstock
Interpublic (IPG) Touches 52-Week High: What's Driving It?
Shares of The Interpublic Group of Companies, Inc. (IPG - Free Report) scaled a 52-week high of $29.65 in the trading session on Mar 11, before closing a tad lower at $29.29.
The company’s shares have charted a solid trajectory in recent times, appreciating 91.9% over the past year, much ahead of 59.4% growth of the industry it belongs to and 59.8% rally of the Zacks S&P 500 composite.
Notably, Interpublic has witnessed a 19.3% rise in share price since it posted fourth-quarter 2020 results.
Let’s find out what’s supporting the uptick.
Dividend Hike
Interpublic announced that its board of directors declared a cash dividend of 27 cents per share, up 5.9% from its prior dividend of 25.5 cents. The raised dividend will be paid on Mar 15, to its shareholders of record as of Mar 1.
Previously, during 2020, 2019 and 2018, Interpublic paid $398.1 million, $363.1 million and $322.1 million in dividends, respectively. Such moves indicate the company’s commitment to create value for shareholders and also underline its confidence in its business. These shareholder-friendly initiatives not only instill investors’ confidence, but also positively impact earnings per share.
Diversified Business Model
Interpublic came up with better-than-expected earnings and revenue performances in the last seven quarters. The company’s digital capabilities, diversified business model and geographic reach offer a distinctive competitive advantage. The company is expected to achieve targeted levels in the coming quarters based on diversification across emerging regions and collaboration/integration across agencies through technological improvement. Moreover, the company continues to look for strategic investments/acquisitions to expand in high-growth regions and key world markets.
Contributions From Acquisitions
Acquisitions, over time, have helped Interpublic expand its product portfolio, thereby trying to stand up to the rapidly-changing marketing services and media prospects. In recent years, Interpublic has acquired agencies across the marketing spectrum, which include firms specialized in digitalization, mobile marketing, social media, healthcare communications and public relations, as well as agencies with full-service capabilities.
Zacks Rank and Stocks to Consider
Interpublic currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the broader Zacks Business Services sector are CoreLogic , Gartner (IT - Free Report) and NV5 Global (NVEE - Free Report) , each carrying a Zacks Rank #2.
The long-term expected earnings per share (three to five years) growth rate for CoreLogic, Gartner and NV5 Global is 10%, 13.5% and 16.8%, respectively.
5G Revolution: 3 Stocks to Make Your Move
With super high data speed, it will make current cell phones obsolete and unlock the full potential of big data, cloud computing, and artificial intelligence. In the next few years this industry is predicted to create 22 million jobs and a stunning $12.3 trillion in revenue.
Today you have an historic chance to pursue almost unimaginable gains like Microsoft, Netflix, and Apple in their early phases. Zacks has released a Special Report that reveals our . . .
Download now. Today the report is FREE >>