Why You Should Buy This Marketing Stock Right Now
We recently compiled a list of the 10 Best Marketing Stocks to Buy Right Now. In this article, we are going to take a look at where The Interpublic Group of Companies Inc. (NYSE:IPG) stands against the other marketing stocks.
According to estimates on Statista, advertising spending across the globe should clock a growth rate of 5.4%, reaching $1.4 trillion in 2029. 80% of the total ad spend will come from digital sources in 2029 with programmatic advertising capturing 85% of the total advertising market. TV and Video Advertising will have a third of the share in 2025 and almost 40% of ad spending will take place in the US. Players like Google and Meta are expected to shape the advertising market by offering new landscapes in this sector.
Advertising ETFs have generated returns of 3.04%, 2.65% and 21.66% for 1-month, 3-month and 1-year tenors. While big tech players pose a threat, there is immense potential to tap a constantly growing advertising pie that would benefit traditional players.
READ ALSO 7 Best Stocks to Buy For Long-Term and 8 Cheap Jim Cramer Stocks to Invest In
Our Methodology
For this article we picked 10 marketing stocks trending on latest news. With each stock we have mentioned the number of hedge fund investors. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
A modern advertising billboard promoting a company’s services in the cityscape.
Number of Hedge Fund Investors: 25
The Interpublic Group of Companies Inc. (NYSE:IPG) provides advertising and marketing services worldwide. There have been rumors that Omnicom would merge with IPG, leading to a consolidation in the industry. While this move has raised eyebrows, IPG offers strong fundamentals with asset-light business, higher return on capital and an established expertise in the industry. FMI Small Cap Equity Strategy sold its 2.6% stake after the proposal by Omnicon due to integration risks.
JP Morgan has raised the target price of IPG from $33 to $39 and views the acquisition in a positive light with better competitive positioning and higher operational efficiencies. IPG not only offers a generous free cash flow but is also a dividend-paying firm with a forward yield of 4.6%. The consolidation should provide a better playing field, enabling the merged entity to work in unison and giving it better pricing power.
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