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Shares in WPP are a ‘buy’ as the advertising giant enjoys rise in revenues

26th October 2015

As advertising giant WPP updates the market Ian Forrest, Investment Research Analyst at The Share Centre, explains what it means for investors…

WPP, the bellwether of the advertising industry, reported this morning that third quarter revenues had risen by 5.9% driven by growth in North America and emerging markets.

The group is widely regarded as a global economic barometer and it offers a wide range of exposure to both digital media and global markets.

Investors should note that the company also stated in these results that events in 2016 such as Rio Olympics and Paralympics, the United States Presidential Election and the UEFA EURO 2016 Football Championships could provide a further boost.

We currently recommend WPP as a ‘buy’ and would suggest new investors drip-feed in the current climate. The growing importance of emerging markets and digital media to the company looks set to continue, allied to improving dividends, earnings momentum and a steady flow of acquisitions.

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