Back to top

Image: Shutterstock

Here's Why You Should Bet on Interpublic Group (IPG) Stock

Read MoreHide Full Article

The Interpublic Group of Companies, Inc. (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 20.8% over the past year against 12.1% decline 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.You can see the complete list of today’s Zacks #1 Rank stocks here.

Northward Estimate Revisions: Three estimates for Interpublic for 2022 moved north over the past 60 days versus no southward revision, reflecting analysts’ confidence in the company. The Zacks Consensus Estimate for 2022 earnings has moved up 2.7% in the past 60 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 67%, on average.

Strong Growth Prospects: The Zacks Consensus Estimate for Interpublic’s 2022 earnings, $2.69 per share, reflects year-over-year growth of 3.5%. Earnings are expected to register 5.6% growth in 2022. The stock has a long-term expected earnings per share growth rate of 4.1%.

Driving Factors: 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.

Other Stocks to Consider

Other stocks worth considering in the broader Zacks Business Services sector are FactSet Research Systems Inc. (FDS - Free Report) and Cross Country Healthcare, Inc. (CCRN - Free Report) .

Cross Country Healthcare has an expected long-term earnings per share (three to five years) growth rate of 6.6%. CCRN has a trailing four-quarter earnings surprise of 41.5%, on average.

Cross Country Healthcare’s shares have surged 76% in the past year. CCRN sports a Zacks Rank #1 (Strong Buy).

FactSet has an expected earnings growth rate of around 15.1% for the current year. FDS has a trailing four-quarter earnings surprise of 6.1%, on average.

FactSet shares have surged 36.9% in the past year. FDS has a long-term earnings growth rate of 10%. FDS carries a Zacks Rank #2.

Published in