Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.
Trade-Ideas LLC identified
) as a momo momentum candidate. In addition to specific proprietary factors, Trade-Ideas identified Interpublic Group of Companies as such a stock due to the following factors:
- IPG has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $151.5 million.
- IPG has a PE ratio of 26.9.
- IPG is currently in the upper 30% of its 1-year range.
- IPG is in the upper 25% of its 20-day range.
- IPG is in the upper 35% of its 5-day range.
- IPG is currently trading above yesterday's high.
- IPG has experienced a gap between today's open and yesterday's close of 0.5%.
'Momo Momentum' stocks are valuable stocks to watch for a variety of reasons including historical back testing and price action. Market technicians refer to such stocks as being in a mark-up phase before a possible distribution period and price decline. Technical analysts and traders frequently find that the factors referenced above tend to create a temporary burst of strong wind in a stock's sail. Nevertheless, all successful traders must excel at maximizing gains while keeping losses to an absolute minimum. For that reason, the holding period on momo momentum stocks must always be a primary consideration, and this part of the puzzle is ultimately at the discretion of each individual's risk tolerance and portfolio risk management skills.
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More details on IPG:
The Interpublic Group of Companies, Inc., through its subsidiaries, provides advertising and marketing services worldwide. The company operates through two segments, Integrated Agency Networks and Constituency Management Group. The stock currently has a dividend yield of 2%. IPG has a PE ratio of 26.9. Currently there are 7 analysts that rate Interpublic Group of Companies a buy, no analysts rate it a sell, and 4 rate it a hold.
The average volume for Interpublic Group of Companies has been 5.2 million shares per day over the past 30 days. Interpublic Group of Companies has a market cap of $8.0 billion and is part of the services sector and media industry. The stock has a beta of 2.13 and a short float of 1.3% with 0.69 days to cover. Shares are up 7% year-to-date as of the close of trading on Wednesday.
rates Interpublic Group of Companies as a
. The company's strengths can be seen in multiple areas, such as its increase in net income, revenue growth, good cash flow from operations, largely solid financial position with reasonable debt levels by most measures and solid stock price performance. We feel these strengths outweigh the fact that the company shows low profit margins.
Highlights from the ratings report include:
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Media industry. The net income increased by 62.9% when compared to the same quarter one year prior, rising from -$56.30 million to -$20.90 million.
- Despite its growing revenue, the company underperformed as compared with the industry average of 14.9%. Since the same quarter one year prior, revenues slightly increased by 6.1%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- Net operating cash flow has slightly increased to -$725.70 million or 6.37% when compared to the same quarter last year. In addition, INTERPUBLIC GROUP OF COS has also modestly surpassed the industry average cash flow growth rate of 6.21%.
- Powered by its strong earnings growth of 64.28% and other important driving factors, this stock has surged by 28.46% over the past year, outperforming the rise in the S&P 500 Index during the same period. Looking ahead, the stock's sharp rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
- INTERPUBLIC GROUP OF COS reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, INTERPUBLIC GROUP OF COS reported lower earnings of $0.59 versus $0.95 in the prior year. This year, the market expects an improvement in earnings ($0.98 versus $0.59).
- You can view the full Interpublic Group of Companies Ratings Report.