The average rating for Interpublic Group's stock, as given by six analysts, is 'Buy'. Is this consensus based on technical analysis? It's well-known that typical technical analysis employs factors such as price momentum, patterns, and trends, using historical prices as a reference. The goal is to identify signals based on the market sentiment of Interpublic's investors, which reflects their perception of the company's future value. Let's delve into a few aspects of the technical analysis for Interpublic Group.
Extended review
The Interpublic Group (IPG) stock has been displaying strong technical indicators that point towards a bullish outlook. Firstly, the Coefficient of Variation is reported at a significant
7.9K, indicating a high level of volatility. This could be attractive to investors who are looking for a high-risk, high-reward play. Secondly, the Mean Deviation stands at 1.38, which suggests that the stock price has a moderate level of variability. This is an important factor to consider as it could imply potential for significant price movement. Furthermore, the Downside Variance is 4.53, which means there is a relatively low risk of a major drop in the stock's price. This is a positive sign for investors who are cautious about downside risks. Additionally, IPG's Payout Ratio is 0.45, which means that the company returns a substantial portion of its earnings to shareholders in the form of dividends. This is an attractive feature for income-focused investors. However, it's worth noting that the company reported a net interest income loss of
111.3M. Despite this, IPG managed to achieve a robust operating income of
1.4B and a net income applicable to common shares of
938M. Given these strong financials, along with the technical indicators, the Interpublic Group stock maintains a bullish outlook. Investors should consider these factors carefully when deciding whether to invest in this US-traded stock.
Using predictive
technical analysis, we can analyze different prices and returns patterns and
diagnose historical swings to determine the real value of Interpublic Group of. In general, sophisticated investors focus on analyzing Interpublic Group stock price patterns and their correlations with different microeconomic environment and drivers. They apply predictive analytics to build Interpublic Group's daily price indicators and compare them against related drivers such as
momentum indicators and various other types of predictive indicators. Using this methodology combined with a more conventional
technical analysis and
fundamental analysis, we attempt to find the most accurate representation of
Interpublic Group's intrinsic value. In addition to deriving basic predictive indicators for Interpublic Group, many experienced traders also check how macroeconomic factors affect Interpublic Group price patterns. Please read more on our
technical analysis page or use our predictive modules below to complement your research.
How does Interpublic Stands against Peers?
Analyzing Interpublic Group competition or peers my help you to expand the diversification possibilities of your existing portfolios and to get a better perspective on locking in new positions. Try to analyze the advantages of investing in traded instruments related to Interpublic Group across multiple sectors and
thematic ideas. A good competitive analysis can cover a lot of different areas. But what areas to choose depends on who you are. The more exhaustive you are in your analysis, the more effective your competitive analysis will be. Check out
Interpublic Group Competition DetailsInterpublic Group Gross Profit
Interpublic Group Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Interpublic Group previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Interpublic Group Gross Profit growth over the last 10 years. Please check Interpublic Group's
gross profit and other
fundamental indicators for more details.
Closer look at Interpublic Downside Variance
Interpublic Group has current Downside Variance of 4.53. Downside Variance (or DV) is measured by target semi-variance and is termed downside volatility. It is expressed in percentages and therefore allows for rankings in the same way as variance. One way to view downside volatility is the annualized variance of returns below the target.
Downside Variance is the probability-weighted squared below-target returns. The squaring of the below-target returns has the effect of penalizing failures at an exponential rate. This is consistent with observations made on the behavior of individual decision-making under.
Downside Variance | = | SUM(RET DEV)2 N(ER) |
| = | 4.53 |
| SUM | = | Summation notation |
| RET DEV | = | Actual returns deviation over selected period |
| N(ER) | = | Number of points with returns less than expected return for the period |
Let's now compare Interpublic Downside Variance to its closest peers:
| IPG | 4.531048607130036 |
| DLPN | 17.58 |
| DRCT | 19.35 |
| DLX | 3.61 |
Interpublic Group (NYSE: IPG) has been on the radar of investors for its robust performance in the market. With a market capitalization of
$14.64B, the company has a 52-week high and low of $40.95 and $24.5145, respectively. The stock has shown a five-year return of 3.92%, indicating a consistent performance. The company's Beta of 1.12 further demonstrates a correlation with the market, suggesting that the stock's price is likely to move with the market.
The company's financials reveal a healthy picture. It has reported an operating income of $1.4B and a net income of $956.1M. Despite an income tax expense of $318.4M, the company has managed to maintain a profit margin of 0.1%. The current ratio stands at 1.04X, indicating that the company can meet its short-term obligations. However, it's essential to note the company's high total debt of
$4.53B. Despite this, Interpublic Group has managed to keep a positive cash flow from operations of $608.8M. Shares owned by institutions make up 99.50% of the total, suggesting strong institutional confidence in the company. Overall, with a PEG ratio of 16.2536 and a Price to Earnings ratio of 13.69X, Interpublic Group presents a favorable investment opportunity for those looking for growth and value. However, investors should also consider the company's potential downside and its probability of bankruptcy at 27.97%. .
Momentum Analysis of Interpublic suggests possible reversal in August
Interpublic Group's stock has demonstrated a notable decrease in the coefficient of variation, dropping to 7879.59 as of today. This statistical measure, reflecting the level of
volatility (or risk) relative to the investment's returns, suggests a potential shift in the stock's momentum. Given the current trend, it is reasonable to speculate that Interpublic may see a reversal in its stock trajectory in August. Investors should closely monitor this stock for any indications of a potential turnaround. As of July 21st, Interpublic maintains a Market Risk Adjusted Performance of 0.0237, a risk-adjusted performance of 0.015, and a Downside Deviation of 2.13. Interpublic's
technical analysis allows investors to use historical prices and volume momentum to determine a pattern that predicts the direction of the company's future prices. In simpler terms, this information can be used to ascertain whether the company will mirror its model of historical price patterns, or if the prices will revert. We were able to interpolate data for nineteen technical drivers for Interpublic Group, which can be compared to its rivals.
Investors are encouraged to review Interpublic Group's information ratio, value at risk, as well as the relationship between the Value At Risk and expected short fall to decide if Interpublic is priced fairly, given its last-minute price of $37.92 per share. Considering that Interpublic Group has a Jensen alpha of -0.032392, we strongly recommend that you verify Interpublic Group's regular market performance to ensure the company can sustain itself in the future. In conclusion, the Interpublic Group (IPG) holds a strong position in the market with a current valuation market value of
37.92 and a real value of
39.55. With a possible upside price of 41.19, it is slightly below the analyst target price estimated value of 41.428, indicating potential for growth. Furthermore, the analyst overall consensus leans towards a 'Buy' recommendation, with 3 strong buys out of 7 estimates. However, investors should also consider the possible downside price of 37.41. The highest and lowest estimated target prices by analysts stand at 45 and 37 respectively, suggesting a wide range of possibilities. Therefore, while there is potential for IPG to enter a relapse, the current data suggests a more optimistic outlook. .
Building efficient market-beating portfolios requires time, education, and a lot of computing power!
The Portfolio Architect is an AI-driven system that provides multiple benefits to our users by leveraging cutting-edge machine learning algorithms, statistical analysis, and predictive modeling to automate the process of asset selection and portfolio construction, saving time and reducing human error for individual and institutional investors.
Try AI Portfolio ArchitectEditorial Staff
Rifka Kats is a Member of Macroaxis Editorial Board. Rifka writes about retail product and service companies from the perspective of a regular consumer and sophisticated investor at the same time. She is passionate about corporate ethics and equality in the workforce.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Rifka Kats do not own shares of Interpublic Group of. Please refer to our
Terms of Use for any information regarding our disclosure principles.
Would you like to provide feedback on the content of this article?
You can get in touch with us directly or send us a quick note via email to
[email protected]