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Interpublic Group (IPG) Outpaces Stock Market Gains: What You Should Know

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Interpublic Group (IPG - Free Report) closed the most recent trading day at $38.07, moving +0.5% from the previous trading session. This change outpaced the S&P 500's 0.33% gain on the day. Elsewhere, the Dow gained 0.3%, while the tech-heavy Nasdaq added 1.92%.

Coming into today, shares of the marketing and advertising company had gained 12.3% in the past month. In that same time, the Business Services sector gained 2.34%, while the S&P 500 gained 5.67%.

Investors will be hoping for strength from Interpublic Group as it approaches its next earnings release, which is expected to be April 27, 2023. On that day, Interpublic Group is projected to report earnings of $0.31 per share, which would represent a year-over-year decline of 34.04%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.2 billion, down 1.37% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $2.85 per share and revenue of $9.72 billion, which would represent changes of +3.64% and +2.82%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for Interpublic Group. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. Over the past month, the Zacks Consensus EPS estimate has moved 1.69% higher. Interpublic Group currently has a Zacks Rank of #3 (Hold).

Looking at its valuation, Interpublic Group is holding a Forward P/E ratio of 13.28. This valuation marks a premium compared to its industry's average Forward P/E of 10.52.

We can also see that IPG currently has a PEG ratio of 1.81. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Advertising and Marketing stocks are, on average, holding a PEG ratio of 1.87 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 50, which puts it in the top 20% 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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