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Reasons to Hold on to Interpublic Group (IPG) Stock For Now

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The Interpublic Group of Companies, Inc. (IPG - Free Report) has had an impressive run on the bourse over the past year. Shares have gained 51.5%, significantly outperforming the 7.9% growth of the industry it belongs to.

What’s Supporting the Rally?

Interpublic’s increasingly diverse workforce gives the company a key competitive edge. The company continues to attract, acquire and develop strategic, creative and digital talent from diverse backgrounds with a view to increase organic growth and strengthen its foothold in international markets.

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 in order to maintain growth in the dynamic sector.

Commitment to shareholder returns makes the Interpublic stock a reliable investment to compound wealth over the long term. In 2020 and 2019, Interpublic paid $398.1 million and $363.1 million in dividends, respectively. In 2018 and 2017, the company paid $322.1 million and $280.3 million in dividend payments and repurchased shares worth $117.1 million and $300.1 million, respectively. Such moves indicate the company’s commitment to create value for shareholders and underline its confidence in its business.

Some Risks

Interpublic has more outstanding long-term debt than cash. Cash and cash equivalent balance at the end of third-quarter 2021 was $2.5 billion compared with the long-term debt level of $3.5 billion.

Zacks Rank & Stocks to Consider

Interpublic currently carries a Zacks Rank #3 (Hold).

Investors interested in the broader Zacks Business Services sector can consider stocks like Avis Budget (CAR - Free Report) , Cross Country Healthcare (CCRN - Free Report)  and Accenture (ACN - Free Report) .

Avis Budget has an expected earnings growth rate of 9.4% for 2021. CAR has a trailing four-quarter earnings surprise of 76.9%, on average.

Avis Budget’s shares have surged 412.5% in the past year. It has a long-term earnings growth of 19.4%. CAR sports a Zacks #1 Rank (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Cross Country Healthcare has an expected earnings growth rate of 500% for 2021. CCRN has a trailing four-quarter earnings surprise of 75%, on average.

Cross Country Healthcare’s shares have surged 150.9% in the past year. It has a long-term earnings growth of 21.5%. CCRN sports a Zacks #1 Rank.

Accenturehas an expected earnings growth rate of around 19.8% for the current year. It has a trailing four-quarter earnings surprise of 5.3%, on average.

Accenture’s shares have surged 46.7% in the past year. It has a long-term earnings growth of 10%. ACN sports a Zacks #1 Rank.