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Is The Interpublic Group of Companies (IPG) Stock Undervalued 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.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

One company value investors might notice is The Interpublic Group of Companies (IPG - Free Report) . IPG is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.

Another valuation metric that we should highlight is IPG's P/B ratio of 3.72. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. IPG's current P/B looks attractive when compared to its industry's average P/B of 5.17. IPG's P/B has been as high as 4.92 and as low as 3.53, with a median of 4.37, over the past year.

Finally, our model also underscores that IPG has a P/CF ratio of 10.32. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 12.26. IPG's P/CF has been as high as 16.89 and as low as 9.81, with a median of 13.26, all within the past year.

Value investors will likely look at more than just these metrics, but the above data helps show that The Interpublic Group of Companies 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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