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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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

One stock to keep an eye on is The Interpublic Group of Companies (IPG - Free Report) . IPG is currently sporting a Zacks Rank #1 (Strong Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 8.87 right now. For comparison, its industry sports an average P/E of 10.97. Over the past year, IPG's Forward P/E has been as high as 11.15 and as low as 8.28, with a median of 9.96.

Finally, investors will want to recognize that IPG has a P/CF ratio of 9.97. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. IPG's P/CF compares to its industry's average P/CF of 11.55. Within the past 12 months, IPG's P/CF has been as high as 10.22 and as low as 7.48, with a median of 8.56.

Investors could also keep in mind Nexxen International Ltd. Sponsored ADR (NEXN - Free Report) , another Advertising and Marketing stock with a Zacks Rank of #2 (Buy) and Value grade of A.

Additionally, Nexxen International Ltd. Sponsored ADR has a P/B ratio of 1.31 while its industry's price-to-book ratio sits at 8.57. For NEXN, this valuation metric has been as high as 1.55, as low as 0.87, with a median of 1.22 over the past year.

These figures are just a handful of the metrics value investors tend to look at, but they help show that The Interpublic Group of Companies and Nexxen International Ltd. Sponsored ADR are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, IPG and NEXN feels like a great value stock at the moment.


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Interpublic Group of Companies, Inc. (The) (IPG) - free report >>

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