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Why You Should Hold Omnicom (OMC) in Your Portfolio Now
Omnicom Group Inc.’s (OMC - Free Report) stock has gained 28.2% in the past six months compared with the 9.6% rally of the industry it belongs to. The company is currently benefiting from prudent investments and acquisitions.
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.
The recent acquisition of dotdotdash is expected to increase Omnicom’s capability to deliver disruptive brand experiences using a flexible working model and specialized skills, thereby increasing the company’s ability to deliver consumer-centric solutions.
Omnicom Group Inc. Revenue (TTM)
Omnicom Group Inc. revenue-ttm | Omnicom Group Inc. Quote
The company’s recently formed specialist e-commerce practice, Transact, is expected to strengthen its e-commerce capabilities by helping clients to allot cross-channel spending, help it make operational changes within inventory and sales systems, and attach strategic decisions with marketing messaging. These, in turn, will help the company increase sales by expanding market share on eRetail platforms.
We believe that the consistency and diversity of Omnicom's operations, and increased focus on delivering consumer-centric strategic business solutions will ensure its long-term profitability.
Omnicom's current ratio (a measure of liquidity) at the end of the September quarter was 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 Holding Corporation (BAH - Free Report) and CRA International, Inc. (CRAI - Free Report) .
Booz Allen presently carries a Zacks Rank #2 (Buy). 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.
CRA International carries a Zacks Rank of 2 at present. CRAI has a long-term earnings growth expectation of 14.3%.
CRA International delivered a trailing four-quarter earnings surprise of 25.7%, on average.