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Interpublic Group (IPG) Gains But Lags Market: What You Should Know

Interpublic Group (IPG) closed at $37.71 in the latest trading session, marking a +0.59% move from the prior day. This move lagged the S&P 500's daily gain of 1.31%. At the same time, the Dow added 1%, and the tech-heavy Nasdaq lost 4.19%.

Prior to today's trading, shares of the marketing and advertising company had gained 6.48% over the past month. This has outpaced the Business Services sector's gain of 1.79% and the S&P 500's gain of 2.12% in that time.

Wall Street will be looking for positivity from Interpublic Group as it approaches its next earnings report date. On that day, Interpublic Group is projected to report earnings of $0.61 per share, which would represent a year-over-year decline of 3.17%. Our most recent consensus estimate is calling for quarterly revenue of $2.28 billion, down 3.95% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $2.96 per share and revenue of $9.38 billion, which would represent changes of +7.64% and -0.7%, respectively, from the prior year.

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Any recent changes to analyst estimates for Interpublic Group should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 3.59% higher. Interpublic Group is currently a Zacks Rank #1 (Strong Buy).

Looking at its valuation, Interpublic Group is holding a Forward P/E ratio of 12.69. This represents a premium compared to its industry's average Forward P/E of 11.2.

We can also see that IPG currently has a PEG ratio of 1.58. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Advertising and Marketing stocks are, on average, holding a PEG ratio of 1.68 based on yesterday's closing prices.

The Advertising and Marketing industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 121, which puts it in the top 49% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

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Interpublic Group of Companies, Inc. (The) (IPG) : Free Stock Analysis Report

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