Interpublic Group Of Cos Inc (IPG): Today's Featured Services 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 Services sector lower today making it today's featured Services laggard. The sector as a whole closed the day down 0.2%. By the end of trading, Interpublic Group of Cos fell $0.22 (-1.6%) to $13.97 on average volume. Throughout the day, 5,402,247 shares of Interpublic Group of Cos exchanged hands as compared to its average daily volume of 5,412,700 shares. The stock ranged in price between $13.91-$14.20 after having opened the day at $14.19 as compared to the previous trading day's close of $14.19. Other companies within the Services sector that declined today were: ChinaNet Online Holdings ( CNET), down 17.5%, DLH Holdings ( DLHC), down 11.4%, ITT Educational Services ( ESI), down 11.3% and Sport Chalet ( SPCHB), down 10.3%.
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The Interpublic Group of Companies, Inc., through its subsidiaries, provides advertising and marketing services worldwide. The company operates in two segments, Integrated Agency Networks and Constituency Management Group. Interpublic Group of Cos has a market cap of $6.0 billion and is part of the media industry. The company has a P/E ratio of 15.5, below the S&P 500 P/E ratio of 17.7. Shares are up 28.8% year to date as of the close of trading on Thursday.

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, attractive valuation levels, good cash flow from operations, largely solid financial position with reasonable debt levels by most measures and increase in net income. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

On the positive front, NTN Buzztime ( NTN), down 22.0%, Constant Contact ( CTCT), down 15.7%, Websense ( WBSN), down 15.3% and J.C. Penney ( JCP), down 11.6% , were all gainers within the services sector with Liberty Global ( LBTYA) being today's featured services sector leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the services sector could consider iShares Dow Jones US Cons Services ( IYC) while those bearish on the services sector could consider ProShares Ultra Short Consumer Sers ( SCC).

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