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Here's Why You Should Retain Interpublic (IPG) Stock for Now
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The Interpublic Group of Companies, Inc. (IPG - Free Report) is currently benefiting from its solid liquidity and shareholder-friendly returns.
IPG’s earnings and revenues for 2022 are expected to improve 5.4% and 3.7% each from the respective year-ago reported figures. Shares of IPG have rallied 3.9% in the past six months against the 7.4% decline of the industry it belongs to.
Image Source: Zacks Investment Research
Factors That Augur Well
Interpublic’s current ratio at the end of third-quarter 2022 was pegged at 1.05, higher than the current ratio of 1.01 reported at the end of the prior-year quarter. An increasing current ratio vouches for a company’s efficiency in meeting its short-term obligations.
Commitment to shareholder returns makes Interpublic a reliable stock for compounding wealth over the long term. In 2021 and 2020, IPG paid out $427.7 million and $398.1 million of dividends, respectively. In 2019 and 2018, IPG made $363.1 million and $322.1 million of dividend payments. Such moves highlight a company’s commitment to creating value for its shareholders and underline its confidence in its business.
A Risk
Interpublic’s cash position is affected by seasonality in its business. This is because of its clients’ fluctuating annual media spending budgets and the changing media spending patterns, varying throughout the year with different localities. Seasonality is observed in the first nine months of a year, with the maximum impact felt in the first quarter.
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Here's Why You Should Retain Interpublic (IPG) Stock for Now
The Interpublic Group of Companies, Inc. (IPG - Free Report) is currently benefiting from its solid liquidity and shareholder-friendly returns.
IPG’s earnings and revenues for 2022 are expected to improve 5.4% and 3.7% each from the respective year-ago reported figures. Shares of IPG have rallied 3.9% in the past six months against the 7.4% decline of the industry it belongs to.
Image Source: Zacks Investment Research
Factors That Augur Well
Interpublic’s current ratio at the end of third-quarter 2022 was pegged at 1.05, higher than the current ratio of 1.01 reported at the end of the prior-year quarter. An increasing current ratio vouches for a company’s efficiency in meeting its short-term obligations.
Commitment to shareholder returns makes Interpublic a reliable stock for compounding wealth over the long term. In 2021 and 2020, IPG paid out $427.7 million and $398.1 million of dividends, respectively. In 2019 and 2018, IPG made $363.1 million and $322.1 million of dividend payments. Such moves highlight a company’s commitment to creating value for its shareholders and underline its confidence in its business.
A Risk
Interpublic’s cash position is affected by seasonality in its business. This is because of its clients’ fluctuating annual media spending budgets and the changing media spending patterns, varying throughout the year with different localities. Seasonality is observed in the first nine months of a year, with the maximum impact felt in the first quarter.
Zacks Rank and Stocks to Consider
IPG currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Some better-ranked stocks in the broader Zacks Business Services sector are Booz Allen Hamilton Holding Corporation (BAH - Free Report) , Paychex, Inc. (PAYX - Free Report) and Cross Country Healthcare, Inc. (CCRN - Free Report) .
Booz Allen carries a Zacks Rank #2 (Buy) at present. BAH has a long-term earnings growth expectation of 7.5%.
Booz Allen delivered a trailing four-quarter earnings surprise of 8.8%, on average.
Paychex carries a Zacks Rank of 2 at present. PAYX has a long-term earnings growth expectation of 7.5%.
Paychex delivered a trailing four-quarter earnings surprise of 8.6%, on average.
Cross Country Healthcare carries a Zacks Rank #2, currently. CCRN has a long-term earnings growth expectation of 6%.
CCRN delivered a trailing four-quarter earnings surprise of 10.1%, on average.