Yahoo Finance Interpublic Group (IPG) Outpaces Stock Market Gains: What You Should Know
In the latest trading session, Interpublic Group (IPG) closed at $39.86, marking a +0.63% move from the previous day. This move outpaced the S&P 500's daily gain of 0.62%. At the same time, the Dow added 0.5%, and the tech-heavy Nasdaq lost 5.66%.
Prior to today's trading, shares of the marketing and advertising company had gained 10.46% over the past month. This has outpaced the Business Services sector's gain of 2.82% and the S&P 500's gain of 3.44% in that time.
Wall Street will be looking for positivity from Interpublic Group as it approaches its next earnings report date. In that report, analysts expect Interpublic Group to post earnings of $0.61 per share. This would mark a year-over-year decline of 3.17%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.28 billion, down 3.95% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.96 per share and revenue of $9.38 billion. These totals would mark changes of +7.64% and -0.7%, respectively, from last 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. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 1.81% higher within the past month. Interpublic Group currently has a Zacks Rank of #2 (Buy).
Digging into valuation, Interpublic Group currently has a Forward P/E ratio of 13.4. For comparison, its industry has an average Forward P/E of 12.77, which means Interpublic Group is trading at a premium to the group.
It is also worth noting that IPG currently has a PEG ratio of 1.67. 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 was holding an average PEG ratio of 1.71 at yesterday's closing price.
The Advertising and Marketing industry is part of the Business Services sector. This group has a Zacks Industry Rank of 170, putting it in the bottom 33% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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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Interpublic Group of Companies, Inc. (The) (IPG) : Free Stock Analysis Report
