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Wednesday, October 4, 2023

The Interpublic Group of Companies Inc. (NYSE:IPG) on the Path to Profitability

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The Interpublic Group of Companies Inc. (IPG) shares are trading at higher $23.69 and the avg recommendation for the stock is Moderate Buy, while the current analyst price target stands at $22.05.

To add more color to this target, the company’s high over the last year is $25.20 and the low is $11.63. Over the last 52 weeks, IPG is up 7.10% while the S&P 500 is up 17.73%. The catalyst for this interesting swing was the company’s recent earnings report.

A Notable Earnings Report

In the last quarter, IPG reported a profit of $376.8 million. The Interpublic Group of Companies Inc. also saw revenues increase to $2.13 billion. In addition, IPG has free cash flow of $213.1 million as of 09-2020. The company’s EBITDA came in at $343.5 million which compares well with its peers.

IPG booked profit margins of 6.00%, its Return on Equity (ROE) is 21.70%, and its Return on Assets is 3.50%. All told, it is clear that, IPG needs to be on your watchlist.

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Of course, we must look beyond the financials and question how well those numbers represent the sustainable earnings power of the business. Investors need to know how sustainable this current run. IPG has a short ratio of 3.78 and outstanding shares of 389.60M.

Company Outlook

IPG has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 3.92 million and more growth is possible in the weeks ahead. Traders will also note the company’s earnings per share came in at 1.44. The Interpublic Group of Companies Inc. IPG also noted assets of $16.07 billion at the end of the last quarter. Investors should also keep an eye on sector updates as IPG has historically followed its peers on positive news.

All told, The Interpublic Group of Companies Inc. IPG has strung together solid data and demonstrated underlying fundamentals. At its current valuation, IPG represents an interesting risk/reward case. Traders should stay tuned to see if this recent report will push the stock to test recent resistance levels.

The Interpublic Group of Companies Inc. IPG is now commanding a market cap of 9.37B and a float of 387.31M. IPG is increasing its credibility in this sector and that could lead to more upside down the line. Sign-up for continuing coverage on shares of IPG stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!

Disclosure: we hold no position in IPG, either long or short, and we have not been compensated for this article.

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