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Is The Interpublic Group of Companies (IPG) Stock Undervalued Right Now?

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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.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

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 company value investors might notice is The Interpublic Group of Companies (IPG - Free Report) . IPG is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.

IPG is also sporting a PEG ratio of 1.10. 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. IPG's PEG compares to its industry's average PEG of 1.11. Within the past year, IPG's PEG has been as high as 10.09 and as low as 0.99, with a median of 1.63.

Finally, investors should note that IPG has a P/CF ratio of 13.75. 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 26.78. Over the past 52 weeks, IPG's P/CF has been as high as 16.89 and as low as 9.67, with a median of 13.72.

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


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