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Is The Interpublic Group of Companies (IPG) a Great Value Stock Right Now?

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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader 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.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

One stock to keep an eye on is The Interpublic Group of Companies (IPG - Free Report) . IPG is currently sporting a Zacks Rank #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 8.54. This compares to its industry's average Forward P/E of 9.68. Over the last 12 months, IPG's Forward P/E has been as high as 11.15 and as low as 8.28, with a median of 9.89.

Finally, our model also underscores that IPG has a P/CF ratio of 9.62. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 10.26. Over the past 52 weeks, IPG's P/CF has been as high as 10.22 and as low as 7.48, with a median of 8.57.

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 is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, IPG feels like a great value stock at the moment.


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