The Interpublic Group of Companies, Inc. ( IPG Quick Quote IPG - Free Report) is a marketing and advertising services provider that has performed extremely well in the past year and has the potential to sustain the momentum in the near term. If you haven’t taken advantage of the share price appreciation yet, it’s time you add the stock to your portfolio. What Makes Interpublic an Attractive Pick? An Outperformer: A glimpse at the company’s price trend reveals that its shares have gained 107.4% over the past year, significantly outperforming the 49.4% growth of the industry it belongs to. Solid Rank & VGM Score: Interpublic currently carries a Zacks Rank #2 (Buy) and has a VGM Score of A. Our research shows that stocks with a VGM Score of A or B, when combined with a Zacks Rank #1 (Strong Buy) or 2, offer the best investment opportunities. Thus, the company seems to be an appropriate investment proposition at the moment. Northward Estimate Revisions: One estimate for Interpublic for 2021 moved north over the past 30 days versus no southward revisions, reflecting analysts’ confidence in the company. The Zacks Consensus Estimate for 2021 earnings has moved up 0.8% in the past 30 days. Positive Earnings Surprise History: Interpublic has an impressive earnings surprise history. The company outpaced the Zacks Consensus Estimate in the trailing four quarters, delivering an earnings surprise of 71.2%, on average. Strong Growth Prospects: The Zacks Consensus Estimate for Interpublic’s 2021 earnings, $8.94 per share, reflects year-over-year growth of 10.9%. Earnings are expected to register 4% growth in 2022. The stock has a long-term expected earnings per share growth rate of 11.5%. Driving Factors: Interpublic’s increasingly diverse workforce gives the company a key competitive edge. It continues to attract, acquire and develop strategic, creative as well as digital talent from diverse backgrounds in order to increase organic growth and strengthen its foothold in international markets.
To develop and maintain direct consumer relationships is one of Interpublic’s key growth strategies. For this, the company provides tools and assists clients in connecting with individual customers at scale. It also brings together data and technology talent, along with media experts, to develop software that enhances clients’ marketing.
The company continues to invest in technology and internationalize its digital specialist agencies to keep pace with the rapidly evolving media landscape. It has been enhancing its digital capabilities like search, social, user experience, content creation, analytics and mobile across its portfolio to maintain growth in the dynamic sector.
Other Stocks to Consider
Other stocks worth considering in the broader Zacks
Business Services sector are ManpowerGroup ( MAN Quick Quote MAN - Free Report) , Cross Country Healthcare ( CCRN Quick Quote CCRN - Free Report) and Genpact ( G Quick Quote G - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here .
The long-term expected earnings per share (three to five years) growth rate for ManpowerGroup, Cross Country Healthcare and Genpact is pegged at 24.2%, 9.9% and 14.7%, respectively.