Yahoo Finance Reasons Why You Should Buy Interpublic (IPG) Stock Right Now
The Interpublic Group of Companies, Inc. IPG, an advertising and marketing service provider, has performed extremely well over the past year and has the potential to sustain momentum in the near term. Consequently, if you haven’t taken advantage of the share price appreciation yet, it is time for you to add the stock to your portfolio.
What Makes IPG an Attractive Pick?
An Outperformer: The company’s price trend reveals that the stock has had an impressive run over the past year. Shares of Interpublic have returned 26.4% against its industry’s 9.7% decline. Meanwhile, the Zacks S&P 500 composite grew 8% in the same time.
Interpublic Group of Companies, Inc. (The) Price
Interpublic Group of Companies, Inc. (The) price | Interpublic Group of Companies, Inc. (The) Quote
Solid Rank: IPG currently sports a Zacks Rank #1 (Strong Buy). Our research shows that stocks with Zacks Rank of 1 or 2 (Buy), offer attractive investment opportunities. Thus, the company appears to be a compelling investment proposition at the moment.
Northward Estimate Revisions: Four fiscal 2023 estimates have moved north in the past 60 days versus no southward revision, reflecting analysts’ confidence in the company. The Zacks Consensus Estimate for fiscal 2023 earnings has moved up 5.3% in the past 60 days.
Positive Earnings Surprise History: IPG has an impressive earnings surprise history. The company outpaced the Zacks Consensus Estimate in three of the trailing four quarters and matched on one instance, delivering an average earnings surprise of 9.5%.
Growth Factors: Interpublic’s diverse workforce, which is the key to its success, gives it a competitive edge over its peer firms. The company’s diverse and creative talent is helping it strengthen its foothold in international markets.
Interpublic has been investing in technology and increasing its digital capabilities like search, social, user experience, content creation and analytics to maintain its growth. The company’s ability to develop and maintain direct customer relationships is one of its core competencies. Interpublic’s services help enhance client marketing.
Interpublic follows a disciplined acquisition strategy, which allows it to enhance growth and explore newer geographical markets. It has acquired agencies with data, technology, e-commerce and healthcare communication firms, and agencies with full-service capacities. The effect of these acquisitions is visible in the company’s first-quarter results, wherein such acquisitions added 20 basis points to revenue growth.
The company committed to returning value to its shareholders in the form of dividends. Interpublic paid out dividends of $457.3 million, $427.7 million and $398.1 million in 2022, 2021 and 2020 respectively. In 2022, the company had rewarded its shareholders with repurchases of $320.1 million. IPG also authorized time-to-time repurchase of stocks up to $350 million in 2023.
Other Stocks to Consider
Some other top-ranked stocks in the Zacks Business Services sector are DocuSign DOCU, Green Dot GDOT and Maximus MMS.
For the first quarter of fiscal 2023, the Zacks Consensus Estimate of DocuSign’s revenues suggests a year-over-year increase of 8.9% to $641.2 million and the same for earnings suggests an increase of 39.5% to 53 cents per share. The company has an impressive earning surprise history, beating the consensus mark in three instances and missing on one instance. The company has an average surprise of 12.3%.
DOCU has a growth score of A and a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
For second-quarter 2023, the Zacks Consensus Estimate of Green Dot’s revenues suggests a year-over-year decline of 4.2% to $340.1 million and the same for earnings indicates a 52.7% dip to 35 cents per share. The company has an impressive earning surprise history, beating the consensus mark in all four trailing quarters. The company has an average surprise of 37.3%.
GDOT has a Value score of A and currently sports a Zacks Rank of 1.
For second-quarter 2023, the Zacks Consensus Estimate of Maximus’ revenues suggests year-over-year growth of 6.1% to $1.2 billion and the same for earnings indicates a 33.3% rise to $1.04 per share. The company has an impressive earning surprise history, beating the Zacks Consensus mark in three instances and missing on one instance. The company has an average surprise of 9.6%.
MMS has a VGM score of A and a Zacks Rank of 2.
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Interpublic Group of Companies, Inc. (The) (IPG) : Free Stock Analysis Report
Green Dot Corporation (GDOT) : Free Stock Analysis Report
Maximus, Inc. (MMS) : Free Stock Analysis Report
DocuSign (DOCU) : Free Stock Analysis Report
