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Here's Why You Should Retain Interpublic (IPG) Stock for Now

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The Interpublic Group of Companies, Inc. (IPG - Free Report) has an impressive Growth Score of B. This style score condenses all the essential metrics from a company’s financial statements to get a true sense of the quality and sustainability of its growth.

The company’s earnings and revenues for 2022 are expected to improve 4.2% and 11.5% year over year, respectively.

Factors That Augur Well

The company continues to invest in technology and internationalize its digital specialist agencies to keep pace with the rapidly evolving media landscape. It has been enhancing its digital capabilities like search, social, user experience, content creation, analytics and mobile across its portfolio to maintain its growth in the dynamic sector.

Developing and maintaining direct consumer relationships is one of Interpublic’s key growth strategies. For this, the company provides tools and assists its clients in connecting with individual customers at scale. Further, it brings together data and technology talent, along with media experts to develop software that enhances client marketing.

Interpublic has a disciplined acquisition strategy focused on high-growth capacities and geographies. It has been acquiring and investing in companies globally, to expand its product portfolio and adjust itself to the rapidly changing marketing services and media prospects. In recent years, Interpublic has acquired agencies across the marketing spectrum includingdata, technology, e-commerce and healthcare communication firms and agencies with full-service capacities.

A Risk

IPG has more debt outstanding than cash. The cash and cash equivalents balance of $2 billion at the end of the second quarter was well below its long-term debt of $2.9 billion. However, the cash level can meet the short-term debt of $46 million.

Zacks Rank and Stocks to Consider

Interpublic currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader Zacks Business Services sector are Avis Budget Group, Inc. (CAR - Free Report) , Genpact Limited (G - Free Report)  and CRA International, Inc. (CRAI - Free Report) .

Avis Budget sports a Zacks Rank of 1 (Strong Buy) at present. CAR has an earnings growth rate of 108.4% for 2022. You can see the complete list of today’s Zacks #1 Rank stocks here.

Avis Budget delivered a trailing four-quarter earnings surprise of 69.5%, on average.

Genpact carries a Zacks Rank #2 (Buy) at present. G has a long-term earnings growth expectation of 12.3%.

Genpact delivered a trailing four-quarter earnings surprise of 10.1%, on average.

CRA International flaunts a Zacks Rank of 1, currently. CRAI has a long-term earnings growth expectation of 14.3%.

CRAI delivered a trailing four-quarter earnings surprise of 26%, on average.

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