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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 at $38.95 in the latest trading session, marking a +0.96% move from the prior day. This move outpaced the S&P 500's daily gain of 0.12%. At the same time, the Dow added 0.03%, and the tech-heavy Nasdaq gained 5.14%.

Interpublic Group will be looking to display strength as it nears its next earnings release. In that report, analysts expect Interpublic Group to post earnings of $0.34 per share. This would mark a year-over-year decline of 46.03%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.39 billion, up 0.59% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $2.96 per share and revenue of $9.74 billion, which would represent changes of +7.64% and +3.08%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for Interpublic Group. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Interpublic Group is currently a Zacks Rank #2 (Buy).

Looking at its valuation, Interpublic Group is holding a Forward P/E ratio of 13.06. This represents a premium compared to its industry's average Forward P/E of 10.84.

Meanwhile, IPG's PEG ratio is currently 1.62. 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. The Advertising and Marketing industry currently had an average PEG ratio of 1.73 as of yesterday's close.

The Advertising and Marketing industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 214, which puts it in the bottom 16% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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