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Interpublic Group of Companies, Inc. (The) (IPG) - free report >>
Booz Allen Hamilton Holding Corporation (BAH) - free report >>
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Why Interpublic Group (IPG) Gained 27.5% in the Past 6 Months
Shares of The Interpublic Group of Companies, Inc. (IPG - Free Report) have gained 27.5% in the past six months compared with 17.6% rise of the industry it belongs to.
Image Source: Zacks Investment Research
The upside was primarily driven by solid liquidity and strong shareholder-friendly measures.
Reasons for Upside
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. Increasing current ratio indicates that the company has no problem meeting its short-term obligations.
Commitment to shareholder returns makes IPG stock a reliable investment to compound wealth over the long term. In 2021, 2020, 2019 and 2018, the company paid $427.7 million, $398.1 million, $363.1 million and $322.1 million as dividends, respectively. Such moves indicate the company’s commitment to create value for shareholders and underline its confidence in its business.
Favorable Estimate Revision
Driven by the above tailwinds, the Zacks Consensus Estimate for current-year earnings has moved up 1.5% to $2.74 per share in the past 90 days.
Zacks Rank and Other Stocks to Consider
Interpublic Group currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Investors interested in the broader Zacks Business Services sector can also consider stocks like Booz Allen Hamilton Holding Corporation (BAH - Free Report) and DocuSign, Inc. (DOCU - Free Report) .
Booz Allen carries a Zacks Rank #2 at present. BAH has a long-term earnings growth expectation of 8.9%.
Booz Allen delivered a trailing four-quarter earnings surprise of 8.8%, on average.
DocuSign is currently Zacks #1 Ranked. DOCU has a long-term earnings growth expectation of 13.7%.
DOCU delivered a trailing four-quarter earnings surprise of 6.6%, on average.