WPP (WPP) Slid on Weaker-Than-Expected Results
In its first-quarter 2025 investor letter, Hotchkis & Wiley Global Value Fund highlighted stocks such as WPP plc (NYSE:WPP). WPP plc (NYSE:WPP) is a creative transformation company that offers communications, experience, commerce, and technology services. The one-month return of WPP plc (NYSE:WPP) was -8.28%, and its shares lost 23.15% of their value over the last 52 weeks. On July 1, 2025, WPP plc (NYSE:WPP) stock closed at $35.88 per share, with a market capitalization of $7.741 billion.
Hotchkis & Wiley Global Value Fund stated the following regarding WPP plc (NYSE:WPP) in its Q1 2025 investor letter:
"WPP plc (NYSE:WPP) is a large ad agency holding company. WPP's stock price came under pressure following weaker-than expected Q424 earnings results. The company trades at a low multiple of consensus earnings with a good balance sheet, we believe WPP can deliver near mid-teens returns from the combination of capital return and capital-free organic growth."
A media buying executive looking out a window at a brand advertiser's billboard.
WPP plc (NYSE:WPP) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 9 hedge fund portfolios held WPP plc (NYSE:WPP) at the end of the first quarter, which was 5 in the previous quarter. While we acknowledge the potential of WPP plc (NYSE:WPP) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the undervalued AI stock set for massive gains.
In another article, we covered WPP plc (NYSE:WPP) and shared the list of undervalued European stocks to invest in. Oakmark International Fund also attributed WPP plc's (NYSE:WPP) decline during the quarter to the same factor in its Q1 2025 investor letter. In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors. While we acknowledge the potential of WPP as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money.
Disclosure: None. This article is originally published at Insider Monkey.
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