2003 Sales: $6.1 billion
2012 Sales: $7 billion2003 EPS -$1.66 2011 EPS: 99 cents Interpublic (IPG), the nation's second-largest ad agency, has felt the effects of an anemic advertising market as a number of publishers and other media firms shrink in size. Even with those top-line pressures, the company has managed to turn around its bottom line in remarkable fashion. Back in 2003, this company lost $640 million (and wouldn't go on to turn a profit until 2007). Yet a tight focus on costs has helped Interpublic to boost operating profit margins for seven straight years, to a recent 9.8%. That helped net income reach a record $520 million in 2011. Meanwhile, shares, which managed to surpass $50 in 1999 and were still above $30 by 2002, now trade for around $11. The current forward P/E multiple of around 11 is quite reasonable when you consider this company's strong industry positioning and leverage to an eventual rebound in the economy and ad spending.
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts