Omnicom Group Inc.’s (OMC - Free Report) stock has gained 13.4% in the past year against the 27.2% decline of the industry it belongs to. The company is currently benefiting from its shareholder-friendly measures and prudent investments.
Factors That Augur Well
Omnicom continues to focus on investing in high-growth areas related to technology and data. Such moves are helping the company improve the quality of service to its clients. Driven by such positives, we expect OMC to witness higher revenues on the back of its organic growth.
Omnicom has a consistent record of returning value to its shareholders in the form of dividends and share repurchases. In 2021, OMC paid out dividends worth $592.3 million and repurchased shares amounting to $527.3 million.
OMC paid out $562.7 million in dividends and bought back shares worth $222 million in 2020. In 2019, Omnicom paid out $564.3 million in dividends and repurchased shares worth $610.2 million. Such moves instill investors’ confidence in the stock and drive its earnings per share.
Some Risks
Omnicom's current ratio (a measure of liquidity) at the end of the September quarter was pegged at 0.95, lower than the September 2021 current ratio of 1.00. A decline in the current ratio is not desirable as it indicates that the company may have problems meeting its short-term debt obligations.
Zacks Rank & Stocks to Consider
Omnicom currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader Zacks Business Services sector are Booz Allen Hamilton (BAH - Free Report) , Paychex (PAYX - Free Report) and Cross Country Healthcare (CCRN - Free Report) .
Booz Allen carries a Zacks Rank #2 (Buy) at present. BAH has a long-term earnings growth expectation of 8.9%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Booz Allen delivered a trailing four-quarter earnings surprise of 8.8% on average.
Paychex presently carries a Zacks Rank #2. PAYX has a long-term earnings growth expectation of 7.5%.
Paychex delivered a trailing four-quarter earnings surprise of 8.6% on average.
Cross Country Healthcare currently carries a Zacks Rank #2. CCRN has a long-term earnings growth expectation of 6%.
CCRN delivered a trailing four-quarter earnings surprise of 10.1% on average.
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Omnicom Group Inc.’s (OMC - Free Report) stock has gained 13.4% in the past year against the 27.2% decline of the industry it belongs to. The company is currently benefiting from its shareholder-friendly measures and prudent investments.
Factors That Augur Well
Omnicom continues to focus on investing in high-growth areas related to technology and data. Such moves are helping the company improve the quality of service to its clients. Driven by such positives, we expect OMC to witness higher revenues on the back of its organic growth.
Omnicom has a consistent record of returning value to its shareholders in the form of dividends and share repurchases. In 2021, OMC paid out dividends worth $592.3 million and repurchased shares amounting to $527.3 million.
OMC paid out $562.7 million in dividends and bought back shares worth $222 million in 2020. In 2019, Omnicom paid out $564.3 million in dividends and repurchased shares worth $610.2 million. Such moves instill investors’ confidence in the stock and drive its earnings per share.
Some Risks
Omnicom's current ratio (a measure of liquidity) at the end of the September quarter was pegged at 0.95, lower than the September 2021 current ratio of 1.00. A decline in the current ratio is not desirable as it indicates that the company may have problems meeting its short-term debt obligations.
Zacks Rank & Stocks to Consider
Omnicom currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader Zacks Business Services sector are Booz Allen Hamilton (BAH - Free Report) , Paychex (PAYX - Free Report) and Cross Country Healthcare (CCRN - Free Report) .
Booz Allen carries a Zacks Rank #2 (Buy) at present. BAH has a long-term earnings growth expectation of 8.9%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Booz Allen delivered a trailing four-quarter earnings surprise of 8.8% on average.
Paychex presently carries a Zacks Rank #2. PAYX has a long-term earnings growth expectation of 7.5%.
Paychex delivered a trailing four-quarter earnings surprise of 8.6% on average.
Cross Country Healthcare currently carries a Zacks Rank #2. CCRN has a long-term earnings growth expectation of 6%.
CCRN delivered a trailing four-quarter earnings surprise of 10.1% on average.
Free Report Reveals How You Could Profit from the Growing Electric Vehicle Industry
Globally, electric car sales continue their remarkable growth even after breaking records in 2021. High gas prices have fueled his demand, but so has evolving EV comfort, features and technology. So, the fervor for EVs will be around long after gas prices normalize. Not only are manufacturers seeing record-high profits, but producers of EV-related technology are raking in the dough as well. Do you know how to cash in? If not, we have the perfect report for you – and it’s FREE! Today, don't miss your chance to download Zacks' top 5 stocks for the electric vehicle revolution at no cost and with no obligation.
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