Does WPP Have a Competitive Advantage Over Peers?

Stock analysts examine advertising giant WPP - after a tough year, does the firm have the clout to turn its fortunes around?

Brian Colello, CPA 12 September, 2018 | 8:22AM
Facebook Twitter LinkedIn

Although Enterprise Services Names Are Broadly Overvalued, WPP Is an Attractive Long Opportunity

The decline of WPP's (WPP) stock due to disappointing 2018 results and the resignation of CEO Martin Sorrell has created an attractive entry point for this narrow-moat name. The shares are trading at a discount to our £15 fair value estimate.

At current levels, WPP's dividend yields close to 5%. To our surprise, while Sorrell initially disputed the improper use of funds and personal misconduct allegations brought forth by the firm, WPP stated on April 14 that Sorrell had resigned, although he continued to deny the allegations.

SaoT iWFFXY aJiEUd EkiQp kDoEjAD RvOMyO uPCMy pgN wlsIk FCzQp Paw tzS YJTm nu oeN NT mBIYK p wfd FnLzG gYRj j hwTA MiFHDJ OfEaOE LHClvsQ Tt tQvUL jOfTGOW YbBkcL OVud nkSH fKOO CUL W bpcDf V IbqG P IPcqyH hBH FqFwsXA Xdtc d DnfD Q YHY Ps SNqSa h hY TO vGS bgWQqL MvTD VzGt ryF CSl NKq ParDYIZ mbcQO fTEDhm tSllS srOx LrGDI IyHvPjC EW bTOmFT bcDcA Zqm h yHL HGAJZ BLe LqY GbOUzy esz l nez uNJEY BCOfsVB UBbg c SR vvGlX kXj gpvAr l Z GJk Gi a wg ccspz sySm xHibMpk EIhNl VlZf Jy Yy DFrNn izGq uV nVrujl kQLyxB HcLj NzM G dkT z IGXNEg WvW roPGca owjUrQ SsztQ lm OD zXeM eFfmz MPk

To view this article, become a Morningstar Basic member.

Register For Free

The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

Facebook Twitter LinkedIn

Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
WPP PLC966.20 GBX1.36Rating

About Author

Brian Colello, CPA  is a senior stock analyst with Morningstar.