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Here's Why Investors Should Retain Interpublic (IPG) Stock Now
The Interpublic Group of Companies, Inc. (IPG - Free Report) performed well in the past three-month period and has the potential to sustain the momentum. If you haven’t taken advantage of its share price appreciation yet, it’s time you add the stock to your portfolio.
Let’s take a look at the factors that make the stock an attractive pick.
An Outperformer: A glimpse at the company’s price trend reveals that its shares have surged 24.4% in the past three-month period compared with 19.8% rise of the industry it belongs to.
Image Source: Zacks Investment Research
Solid Rank: Interpublic currently carries a Zacks Rank #2 (Buy). Our research shows that stocks with a Zacks Rank #1 (Strong Buy) or 2 offer attractive investment opportunities. You can see the complete list of today’s Zacks #1 Rank stocks here.
Northward Estimate Revisions: Two estimates for 2023 moved north in the past 60 days versus no southward revision, reflecting analysts’ confidence in the company. The Zacks Consensus Estimate for 2023 earnings has moved up 3.4% in the past 60 days.
Positive Earnings Surprise History: Interpublic has an impressive earnings surprise history. IPG outpaced the Zacks Consensus Estimate in all the trailing four quarters, delivering an earnings surprise of 8.9%, on average.
Strong Growth Prospects: IPG’s long-term expected earnings per share growth rate is at 3.7%.
Driving Factors: Commitment to shareholder returns makes the Interpublic stock a reliable investment to compound wealth over the long term. In 2021, 2020, 2019 and 2018, IPG 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.
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.
Other Stocks to Consider
Other stocks worth considering in the broader Zacks Business Services sector are Paychex, Inc. (PAYX - Free Report) and DocuSign, Inc. (DOCU - Free Report) .
Paychex carries a Zacks Rank #2 at present. PAYX has a long-term earnings growth expectation of 7.5%.
Paychex delivered a trailing four-quarter earnings surprise of 5.9%, 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.