We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Why You Should Hold on to Omnicom (OMC) Stock Right Now
Read MoreHide Full Article
Omnicom Group Inc.’s (OMC - Free Report) shares have outperformed the Zacks categorized Advertising and Marketing industry over the last two months with an average decline of 3%, narrower than the average loss of 5.2% for the latter. The company’s earnings estimates for the same period have seen a positive revision of 1.1%. Omnicom has an average positive earnings surprise of 2.31% for the trailing four quarters, beating estimates on every occasion.
Omnicom has a VGM Score of ‘A’. Per the valuation metrics, the company may be undervalued compared to its peers at the moment. It has a strong score of ‘A’ on both value and growth front.
Over the last 12-month period, the return on equity increased 42.39% compared with just 8.29% gain of the industry. We expect the company to witness higher revenues in the imminent future on the back of prudent acquisitions and organic growth.
Omnicom is experiencing continuous revenue growth, driven by healthy performance in developed markets like the U.S. and developing markets like Asia. The measures undertaken by the company to reduce costs have also helped it boost earnings. It is expanding its global footprint and is moving into new service areas. It is also building upon its digital and analytical capabilities by investing in agencies and partnering with innovative technology companies in key markets. Omnicom’s operations are diversified across technology platforms, thus lowering its dependence on any one product in these dynamic technological markets. All these initiatives augur well for the long-term growth and stability of the company.
In addition, the company also reported modest fourth-quarter 2016 results, with a track record of strengthening its business and expanding its global client base through acquisition of complementary companies. We remain encouraged by the healthy quarterly results of the company and its acquisition spree.
Bottom Line
Omnicom currently carries a Zacks Rank #3 (Hold). We believe that investors should hold on to the stock and wait for broader factors to improve as its growth prospects make it a compelling pick.
CBIZ has beaten earnings estimates twice in the trailing four quarters for a positive surprise of 21.45%.
CRA International has a long-term earnings growth expectation of 8%.
The Hackett Group has a long-term earnings growth expectation of 17.3%.
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2017? Who wouldn't? Last year's market-beating Top 10 portfolio produced 5 double-digit winners. For example, oil and natural gas giant Pioneer Natural Resources and First Republic Bank racked up stellar gains of +44.9% and +44.3% respectively. Now a brand-new list for 2017 has been hand-picked from 4,400 companies covered by the Zacks Rank. See the 2017 Top 10 right now>>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Why You Should Hold on to Omnicom (OMC) Stock Right Now
Omnicom Group Inc.’s (OMC - Free Report) shares have outperformed the Zacks categorized Advertising and Marketing industry over the last two months with an average decline of 3%, narrower than the average loss of 5.2% for the latter. The company’s earnings estimates for the same period have seen a positive revision of 1.1%. Omnicom has an average positive earnings surprise of 2.31% for the trailing four quarters, beating estimates on every occasion.
Omnicom has a VGM Score of ‘A’. Per the valuation metrics, the company may be undervalued compared to its peers at the moment. It has a strong score of ‘A’ on both value and growth front.
Over the last 12-month period, the return on equity increased 42.39% compared with just 8.29% gain of the industry. We expect the company to witness higher revenues in the imminent future on the back of prudent acquisitions and organic growth.
Omnicom is experiencing continuous revenue growth, driven by healthy performance in developed markets like the U.S. and developing markets like Asia. The measures undertaken by the company to reduce costs have also helped it boost earnings. It is expanding its global footprint and is moving into new service areas. It is also building upon its digital and analytical capabilities by investing in agencies and partnering with innovative technology companies in key markets. Omnicom’s operations are diversified across technology platforms, thus lowering its dependence on any one product in these dynamic technological markets. All these initiatives augur well for the long-term growth and stability of the company.
In addition, the company also reported modest fourth-quarter 2016 results, with a track record of strengthening its business and expanding its global client base through acquisition of complementary companies. We remain encouraged by the healthy quarterly results of the company and its acquisition spree.
Bottom Line
Omnicom currently carries a Zacks Rank #3 (Hold). We believe that investors should hold on to the stock and wait for broader factors to improve as its growth prospects make it a compelling pick.
Stocks to Consider
Some better-ranked stocks in the industry include CBIZ, Inc. (CBZ - Free Report) , CRA International, Inc. (CRAI - Free Report) and The Hackett Group, Inc. (HCKT - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
CBIZ has beaten earnings estimates twice in the trailing four quarters for a positive surprise of 21.45%.
CRA International has a long-term earnings growth expectation of 8%.
The Hackett Group has a long-term earnings growth expectation of 17.3%.
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2017? Who wouldn't? Last year's market-beating Top 10 portfolio produced 5 double-digit winners. For example, oil and natural gas giant Pioneer Natural Resources and First Republic Bank racked up stellar gains of +44.9% and +44.3% respectively. Now a brand-new list for 2017 has been hand-picked from 4,400 companies covered by the Zacks Rank. See the 2017 Top 10 right now>>