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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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.
Omnicom (OMC - Free Report) is a stock many investors are watching right now. OMC is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 12.52. This compares to its industry's average Forward P/E of 16.40. Over the past 52 weeks, OMC's Forward P/E has been as high as 13.18 and as low as 7.56, with a median of 10.76.
Investors should also recognize that OMC has a P/B ratio of 4.54. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 11.51. Over the past year, OMC's P/B has been as high as 4.68 and as low as 3.10, with a median of 4.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. OMC has a P/S ratio of 1.25. This compares to its industry's average P/S of 1.26.
Finally, we should also recognize that OMC has a P/CF ratio of 14.06. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. OMC's current P/CF looks attractive when compared to its industry's average P/CF of 16.10. Over the past 52 weeks, OMC's P/CF has been as high as 14.40 and as low as 6.81, with a median of 10.02.
Value investors will likely look at more than just these metrics, but the above data helps show that Omnicom is likely undervalued currently. And when considering the strength of its earnings outlook, OMC sticks out at as one of the market's strongest value stocks.
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Should Value Investors Buy Omnicom (OMC) Stock?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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.
Omnicom (OMC - Free Report) is a stock many investors are watching right now. OMC is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 12.52. This compares to its industry's average Forward P/E of 16.40. Over the past 52 weeks, OMC's Forward P/E has been as high as 13.18 and as low as 7.56, with a median of 10.76.
Investors should also recognize that OMC has a P/B ratio of 4.54. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 11.51. Over the past year, OMC's P/B has been as high as 4.68 and as low as 3.10, with a median of 4.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. OMC has a P/S ratio of 1.25. This compares to its industry's average P/S of 1.26.
Finally, we should also recognize that OMC has a P/CF ratio of 14.06. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. OMC's current P/CF looks attractive when compared to its industry's average P/CF of 16.10. Over the past 52 weeks, OMC's P/CF has been as high as 14.40 and as low as 6.81, with a median of 10.02.
Value investors will likely look at more than just these metrics, but the above data helps show that Omnicom is likely undervalued currently. And when considering the strength of its earnings outlook, OMC sticks out at as one of the market's strongest value stocks.