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Are Investors Undervaluing Omnicom (OMC) Right Now?

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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

One company value investors might notice is Omnicom (OMC - Free Report) . OMC is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.

We should also highlight that OMC has a P/B ratio of 5.41. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 12.56. Within the past 52 weeks, OMC's P/B has been as high as 6.13 and as low as 4.96, with a median of 5.40.

Finally, our model also underscores that OMC has a P/CF ratio of 10.73. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 18.19. Within the past 12 months, OMC's P/CF has been as high as 13.47 and as low as 10.24, with a median of 11.83.

These are only a few of the key metrics included in Omnicom's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, OMC looks like an impressive value stock at the moment.


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