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Should Value Investors Buy The Interpublic Group of Companies (IPG) Stock?

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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

One company to watch right now is The Interpublic Group of Companies (IPG - Free Report) . IPG is currently sporting a Zacks Rank #1 (Strong Buy) and an A for Value. The stock has a Forward P/E ratio of 8.88. This compares to its industry's average Forward P/E of 9.00. IPG's Forward P/E has been as high as 11.21 and as low as 8.28, with a median of 10.06, all within the past year.

We should also highlight that IPG has a P/B ratio of 2.58. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 6.81. Over the past 12 months, IPG's P/B has been as high as 3.16 and as low as 2.30, with a median of 2.64.

If you're looking for another solid Advertising and Marketing value stock, take a look at Omnicom Group (OMC - Free Report) . OMC is a Zacks Rank of #2 (Buy) stock with a Value score of A.

Shares of Omnicom Group currently hold a Forward P/E ratio of 8.74, and its PEG ratio is 1.47. In comparison, its industry sports average P/E and PEG ratios of 9.00 and 0.93.

OMC's Forward P/E has been as high as 12.75 and as low as 8.00, with a median of 9.91. During the same time period, its PEG ratio has been as high as 2.34, as low as 1.35, with a median of 1.84.

Additionally, Omnicom Group has a P/B ratio of 2.98 while its industry's price-to-book ratio sits at 6.81. For OMC, this valuation metric has been as high as 4.84, as low as 2.71, with a median of 3.43 over the past year.

These are only a few of the key metrics included in The Interpublic Group of Companies and Omnicom Group strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, IPG and OMC look like an impressive value stock at the moment.


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