Are Investors Undervaluing Interpublic Group (IPG) Right Now?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to...
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company to watch right now is Interpublic Group (IPG). IPG is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.
Investors should also note that IPG holds a PEG ratio of 1.29. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. IPG's industry currently sports an average PEG of 1.30. Over the past 52 weeks, IPG's PEG has been as high as 10.09 and as low as 1.21, with a median of 1.73.
We should also highlight that IPG has a P/B ratio of 4.77. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 6.19. Over the past 12 months, IPG's P/B has been as high as 4.92 and as low as 2.47, with a median of 3.97.
Finally, investors should note that IPG has a P/CF ratio of 13.51. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 27.32. IPG's P/CF has been as high as 16.89 and as low as 7.33, with a median of 13.44, all within the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that Interpublic Group is likely undervalued currently. And when considering the strength of its earnings outlook, IPG sticks out at as one of the market's strongest value stocks.
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Interpublic Group of Companies, Inc. The (IPG): Free Stock Analysis Report
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