For most investors, how much a stock's price changes over time is important. This factor can impact your investment portfolio as well as help you compare investment results across sectors and industries.

The fear of missing out, or FOMO, also plays a factor in investing, especially with particular tech giants, as well as popular consumer-facing stocks.

What if you'd invested in Interpublic Group (IPG Quick QuoteIPG - Free Report) ten years ago? It may not have been easy to hold on to IPG for all that time, but if you did, how much would your investment be worth today?

Interpublic Group's Business In-Depth

With that in mind, let's take a look at Interpublic Group's main business drivers.

New York-based Interpublic Group of Companies Inc., together with its subsidiaries, provides advertising and marketing services worldwide. The company was founded in September 1930 as a successor to the advertising agency businesses founded in 1902 and 1911 by A.W. Erickson and Harrison K. McCann, respectively, and was formerly known as McCann-Erickson. In 1961, the company was re-incorporated in Delaware and was named The Interpublic Group of Companies.

Interpublic specializes in consumer advertising, digital marketing, public relations, communications planning and media buying, and specialized communications disciplines. It provides multi-channel advertising and communications and marketing services such as meeting and event production, public relations, sports and entertainment marketing, corporate and brand identity, and strategic marketing consulting to a broad list of customers in more than 100 countries. The company focuses on point-to-point client interaction which enables accurate decision-making and enhanced customer focus.

Interpublic’s agencies create customized marketing programs for clients that include large global marketers as well as regional and local clients. Comprehensive global services are offered to multinational and local clients in markets across the world as these clients target brand building, increase in sales and market share. Solutions vary from project-based activity involving one agency to long-term, fully integrated campaigns created by multiple IPG agencies working together.

The company has two revenue segments, Integrated Agency Networks (IAN), comprising FCB, Lowe, McCann Worldgroup, IPG Mediabrands, digital specialist agencies and our domestic integrated agencies, and Constituency Management Group (CMG), consisting of a number of specialist marketing service offerings.

The company has undertaken a number of strategic moves in the recent years to fend off competition and strengthen position in the global advertising and communications market. These include, investment in senior talent, increase in digital capabilities, investments in emerging and strategic markets, use of integrated marketing solutions and acquisitions. Interpublic's peers include WPP, Omnicom, Clear Channel and Publicis.

Bottom Line

Putting together a successful investment portfolio takes a combination of research, patience, and a little bit of risk. For Interpublic Group, if you bought shares a decade ago, you're likely feeling really good about your investment today.

A $1000 investment made in June 2013 would be worth $2,733.51, or a gain of 173.35%, as of June 14, 2023, according to our calculations. This return excludes dividends but includes price appreciation.

Compare this to the S&P 500's rally of 167% and gold's return of 34.30% over the same time frame.

Going forward, analysts are expecting more upside for IPG.

Interpublic's digital capabilities, diverse workforce and geographic reach offer a distinctive competitive advantage. The company has been acquiring and investing in companies globally, in order to expand its product portfolio and adjust itself with the rapidly changing marketing services and media prospects. Interpublic has enough cash to meet its current debt. Consistency in dividend payments and share buybacks boosts investor confidence and positively impact the company's earnings per share. Partly due to these positives, Interpublic's shares have gained 44.2% in the past year. However, global presence makes Interpublic vulnerable to risks associated with foreign currency exchange rate fluctuations. Client concentration can be a major hindrance to Interpublic's business. Seasonality is another concern.

The stock has jumped 11.14% over the past four weeks. Additionally, no earnings estimate has gone lower in the past two months, compared to 4 higher, for fiscal 2023; the consensus estimate has moved up as well.