Interpublic Group Of Cos Inc (IPG): Today's Featured Media Laggard

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

Interpublic Group of Cos ( IPG) pushed the Media industry lower today making it today's featured Media laggard. The industry as a whole was unchanged today. By the end of trading, Interpublic Group of Cos fell 11 cents (-1%) to $10.65 on light volume. Throughout the day, 5.6 million shares of Interpublic Group of Cos exchanged hands as compared to its average daily volume of 7.9 million shares. The stock ranged in price between $10.62-$10.79 after having opened the day at $10.75 as compared to the previous trading day's close of $10.76. Other companies within the Media industry that declined today were: Dial Global ( DIAL), down 8.8%, Inuvo ( INUV), down 6.5%, ChinaNet Online Holdings ( CNET), down 6.3%, and Digital Domain Media Group ( DDMG), down 6%.

The Interpublic Group of Companies, Inc., through its subsidiaries, provides advertising and marketing services worldwide. Its services include consumer advertising, digital marketing, communications planning and media buying, public relations, and specialized communications disciplines. Interpublic Group of Cos has a market cap of $4.73 billion and is part of the services sector. The company has a P/E ratio of 10.8, above the average media industry P/E ratio of 10.7 and below the S&P 500 P/E ratio of 17.7. Shares are up 10.6% year to date as of the close of trading on Monday. Currently there are 13 analysts that rate Interpublic Group of Cos a buy, one analyst rates it a sell, and three rate it a hold.

TheStreet Ratings rates Interpublic Group of Cos as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, notable return on equity, attractive valuation levels, largely solid financial position with reasonable debt levels by most measures and impressive record of earnings per share growth. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the media industry could consider PowerShares Dynamic Media ( PBS) while those bearish on the media industry could consider ProShares Ultra Sht Consumer Services ( SCC).
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