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Should Value Investors Buy WPP (WPP) Stock?

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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.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

One company value investors might notice is WPP (WPP - Free Report) . WPP is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 10.09, which compares to its industry's average of 11.98. Over the last 12 months, WPP's Forward P/E has been as high as 13.49 and as low as 7.19, with a median of 8.93.

WPP is also sporting a PEG ratio of 1.67. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. WPP's PEG compares to its industry's average PEG of 2.29. Over the past 52 weeks, WPP's PEG has been as high as 1.67 and as low as 0.70, with a median of 0.91.

These are just a handful of the figures considered in WPP's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that WPP is an impressive value stock right now.


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