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Reasons Why You Should Add Omnicom (OMC) to Your Portfolio
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Omnicom Group Inc. (OMC - Free Report) has had an impressive run in the past three months. The company’s shares have gained 18.1%, outperforming the 15.9% rally of the industry it belongs to and the 10.8% rally of the Zacks S&P 500 composite.
What Makes OMC an Attractive Pick?
Solid Rank: OMC currently carries a Zacks Rank #2 (Buy). Our research shows that stocks with a Zacks Rank #1 (Strong Buy) or 2 offer attractive investment opportunities for investors. Thus, the company appears to be a compelling investment proposition at the moment.
Northward Estimate Revisions: Two estimates for 2024 moved north over the past 60 days versus no southward revisions, reflecting analysts’ confidence in the company. Over the same period, the Zacks Consensus Estimate for 2024 increased 0.7%.
Positive Earnings Surprise History: OMC has an impressive earnings surprise history. It outpaced the Zacks Consensus Estimate in all the trailing four quarters, delivering an average earnings surprise of 5.5%.
Strong Growth Prospects: The company’s Zacks Consensus Estimate for 2024 earnings of $7.73 indicates year-over-year growth of 4.6%. The stock’s long-term expected earnings per share growth rate is 4.9%.
Growth Factors: Omnicom’s financial performance is being driven by strong performance across global geographies and continued strength in faster-growing disciplines. Consistency and diversity of the company's operations and increased focus on delivering consumer-centric strategic business solutions ensure long-term profitability for the company.
Omnicom is currently benefiting from new business wins and remains focused on integrating creativity, digital technology and data for developing marketing solutions that are capable of catering to the business transformation needs of clients.
Commitment to shareholder returns makes OMC a reliable way for investors to compound wealth over the long term. In 2022, 2021 and 2020, the company paid dividends of $581.1 million, $592.3 million and $562.7 million, respectively. Omnicom repurchased shares worth $611.4 million, $527.3 million and $222 million in 2022, 2021 and 2020, respectively.
Other Stocks to Consider
Investors interested in the broader Zacks Business Service sector may also consider the following other top-ranked stocks:
Gartner (IT - Free Report) : The Zacks Consensus Estimate for Gartner’s 2023 revenues indicates 7.9% growth from the year-ago figure. Its earnings are expected to decline 1.9% year over year. The company beat the consensus estimate in each of the four quarters, with the average surprise being 34.4%.
Broadridge Financial Solutions (BR - Free Report) : The Zacks Consensus Estimate for Broadridge’s fiscal 2024 revenues indicates 7.7% growth from the year-ago figure. Its earnings are expected to grow 10.1% year over year. The company beat the consensus estimate in three of the past four quarters and matched once, with the average surprise being 5.4%.
BR currently carries a Zacks Rank of 2.
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Reasons Why You Should Add Omnicom (OMC) to Your Portfolio
Omnicom Group Inc. (OMC - Free Report) has had an impressive run in the past three months. The company’s shares have gained 18.1%, outperforming the 15.9% rally of the industry it belongs to and the 10.8% rally of the Zacks S&P 500 composite.
What Makes OMC an Attractive Pick?
Solid Rank: OMC currently carries a Zacks Rank #2 (Buy). Our research shows that stocks with a Zacks Rank #1 (Strong Buy) or 2 offer attractive investment opportunities for investors. Thus, the company appears to be a compelling investment proposition at the moment.
Omnicom Group Inc. Price
Omnicom Group Inc. price | Omnicom Group Inc. Quote
Northward Estimate Revisions: Two estimates for 2024 moved north over the past 60 days versus no southward revisions, reflecting analysts’ confidence in the company. Over the same period, the Zacks Consensus Estimate for 2024 increased 0.7%.
Positive Earnings Surprise History: OMC has an impressive earnings surprise history. It outpaced the Zacks Consensus Estimate in all the trailing four quarters, delivering an average earnings surprise of 5.5%.
Strong Growth Prospects: The company’s Zacks Consensus Estimate for 2024 earnings of $7.73 indicates year-over-year growth of 4.6%. The stock’s long-term expected earnings per share growth rate is 4.9%.
Growth Factors: Omnicom’s financial performance is being driven by strong performance across global geographies and continued strength in faster-growing disciplines. Consistency and diversity of the company's operations and increased focus on delivering consumer-centric strategic business solutions ensure long-term profitability for the company.
Omnicom is currently benefiting from new business wins and remains focused on integrating creativity, digital technology and data for developing marketing solutions that are capable of catering to the business transformation needs of clients.
Commitment to shareholder returns makes OMC a reliable way for investors to compound wealth over the long term. In 2022, 2021 and 2020, the company paid dividends of $581.1 million, $592.3 million and $562.7 million, respectively. Omnicom repurchased shares worth $611.4 million, $527.3 million and $222 million in 2022, 2021 and 2020, respectively.
Other Stocks to Consider
Investors interested in the broader Zacks Business Service sector may also consider the following other top-ranked stocks:
Gartner (IT - Free Report) : The Zacks Consensus Estimate for Gartner’s 2023 revenues indicates 7.9% growth from the year-ago figure. Its earnings are expected to decline 1.9% year over year. The company beat the consensus estimate in each of the four quarters, with the average surprise being 34.4%.
IT sports a Zacks Rank of 1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Broadridge Financial Solutions (BR - Free Report) : The Zacks Consensus Estimate for Broadridge’s fiscal 2024 revenues indicates 7.7% growth from the year-ago figure. Its earnings are expected to grow 10.1% year over year. The company beat the consensus estimate in three of the past four quarters and matched once, with the average surprise being 5.4%.
BR currently carries a Zacks Rank of 2.