10 Best Marketing Stocks to Buy Right Now

3. The Interpublic Group of Companies Inc. (NYSE:IPG)

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.