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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) continues to benefit from its Open Architecture solutions and increasingly diverse workforce. The company has an expected long-term (three to five years) earnings per share growth rate of 5.2%. Earnings are expected to improve 10.9% year over year in 2023. The stock gained 12% in the past year.
Factors That Augur Well
Interpublic’s increasingly diverse workforce gives the company a key competitive edge. The company continues to attract, acquire and develop strategic, creative and digital talent from diverse backgrounds with a view to increase organic growth and strengthen its foothold in international markets.
Interpublic Group of Companies, Inc. (The) Revenue (TTM)
Interpublic continues to invest in technology and enhance its platform capabilities to keep pace with the rapidly evolving media landscape. The company’s Open Architecture solutions, which combine the best talent from agency brands to fulfil client requirements, is a key business differentiator.
Commitment to shareholder returns makes the stock a reliable investment to compound wealth over the long term. In 2022, 2021 and 2020, Interpublic paid $457.3 million, $427.7 million and $398.1 million in dividends, respectively. Such moves indicate the company’s commitment to creating value for shareholders and underline its confidence in its business.
A Risk
IPG has more debt outstanding than cash. The cash and cash equivalents balance of $1.7 billion at the end of the second quarter was well below its long-term debt of $2.9 billion. However, the cash level can meet the short-term debt of $281 million.
Zacks Rank and Stocks to Consider
Interpublic currently carries a Zacks Rank #3 (Hold).
Here are some better-ranked stocks from the broader Business Service sector that investors may consider:
Verisk Analytics (VRSK - Free Report) beat the Zacks Consensus Estimate in three of the four previous quarters and matched once, with an average surprise of 9.9%. The consensus mark for 2023 revenues is pegged at $2.66 billion, indicating an 8.2% decrease from the year-ago reported figure. Its earnings are pegged at $5.71 per share for 2023, suggesting 14% growth from the year-ago reported figure. VRSK currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Automatic Data (ADP - Free Report) currently has a Zacks Rank of 2. The company beat the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 3.1%. The consensus estimate for fiscal 2023 revenues and earnings implies year-over-year growth of 6.3% and 11.1%, respectively.
Broadridge (BR - Free Report) currently carries a Zacks Rank of 2. It beat the Zacks Consensus Estimate in two of the trailing four quarters, missed once and matched on one instance, the average surprise being 0.5%. The consensus estimate for fiscal 2024 revenues and earnings suggests a rise of 7.2% and 8.8% year over year, respectively.
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Here's Why You Should Retain Interpublic (IPG) Stock for Now
The Interpublic Group of Companies, Inc. (IPG - Free Report) continues to benefit from its Open Architecture solutions and increasingly diverse workforce. The company has an expected long-term (three to five years) earnings per share growth rate of 5.2%. Earnings are expected to improve 10.9% year over year in 2023. The stock gained 12% in the past year.
Factors That Augur Well
Interpublic’s increasingly diverse workforce gives the company a key competitive edge. The company continues to attract, acquire and develop strategic, creative and digital talent from diverse backgrounds with a view to increase organic growth and strengthen its foothold in international markets.
Interpublic Group of Companies, Inc. (The) Revenue (TTM)
Interpublic Group of Companies, Inc. (The) revenue-ttm | Interpublic Group of Companies, Inc. (The) Quote
Interpublic continues to invest in technology and enhance its platform capabilities to keep pace with the rapidly evolving media landscape. The company’s Open Architecture solutions, which combine the best talent from agency brands to fulfil client requirements, is a key business differentiator.
Commitment to shareholder returns makes the stock a reliable investment to compound wealth over the long term. In 2022, 2021 and 2020, Interpublic paid $457.3 million, $427.7 million and $398.1 million in dividends, respectively. Such moves indicate the company’s commitment to creating value for shareholders and underline its confidence in its business.
A Risk
IPG has more debt outstanding than cash. The cash and cash equivalents balance of $1.7 billion at the end of the second quarter was well below its long-term debt of $2.9 billion. However, the cash level can meet the short-term debt of $281 million.
Zacks Rank and Stocks to Consider
Interpublic currently carries a Zacks Rank #3 (Hold).
Here are some better-ranked stocks from the broader Business Service sector that investors may consider:
Verisk Analytics (VRSK - Free Report) beat the Zacks Consensus Estimate in three of the four previous quarters and matched once, with an average surprise of 9.9%. The consensus mark for 2023 revenues is pegged at $2.66 billion, indicating an 8.2% decrease from the year-ago reported figure. Its earnings are pegged at $5.71 per share for 2023, suggesting 14% growth from the year-ago reported figure. VRSK currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Automatic Data (ADP - Free Report) currently has a Zacks Rank of 2. The company beat the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 3.1%. The consensus estimate for fiscal 2023 revenues and earnings implies year-over-year growth of 6.3% and 11.1%, respectively.
Broadridge (BR - Free Report) currently carries a Zacks Rank of 2. It beat the Zacks Consensus Estimate in two of the trailing four quarters, missed once and matched on one instance, the average surprise being 0.5%. The consensus estimate for fiscal 2024 revenues and earnings suggests a rise of 7.2% and 8.8% year over year, respectively.