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Why You Should Start Adding Omnicom (OMC) to Your Portfolio
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Omnicom Group, Inc(OMC - Free Report) is a advertising and marketing service provider that has performed extremely well over the past year and has the potential to sustain momentum in the near term. Consequently, if you haven’t taken advantage of the share price appreciation yet, it’s time you add the stock to your portfolio.
What Makes OMC an Attractive Pick?
An Outperformer: The company’s price trend reveals that the stock has had an impressive run over the past six months. Omnicom has outperformed the Zacks industry in the same time frame. The stock has surged 43.4% compared with the industry's 35.1% increase and 11.9% uptick of the Zacks S&P 500 composite in the past six months.
Solid Rank: OMC currently sports a Zacks Rank #1 (Strong Buy) and has a VGM Score of A. Our research shows that stocks with a VGM Score of A or B, when combined with a Zacks Rank of 1 or 2 (Buy), offer the best investment opportunities. Thus, the company appears to be a compelling investment proposition at the moment. You can see the complete list of today’s Zacks #1 Rank stocks here.
Northward Estimate Revisions: Earnings growth and stock price gains often indicate a company’s prospects. For the full year 2023, the earnings are pegged at $7.17. This has been revised upward13.5% in the past 60 days.The favorable estimate revision reflects the confidence of brokers in the stock.
Positive Earnings Surprise History: The company has an impressive earning surprise history, beating the Zacks Consensus Estimate in the four trailing quarters with an average surprise of 8%.
Bullish Industry Rank: The industry to which Omnicom Group belongs currently has a Zacks Industry Rank of 27 (of 249 groups). Such a solid rank places the industry in the top 11% of the Zacks industries. Studies show that 50% of a stock price movement is directly tied to the performance of the industry group that it hails from.
In fact, a mediocre stock in a healthy group is likely to outperform a robust stock in a poor industry. Therefore, taking the industry’s performance into account becomes necessary.
Growth Factors: OMC has been benefiting from its internal strengths in the form of operational efficiency through investments in real estate and the value chain. Omnicom is banking on organic growth which is helping the company to earn greater revenues. The company has also been making selective acquisitions.
The company is also supported by divestments and reorganization of underperforming and non-core businesses. The diverse operations of the business along with its customer-centric strategic business solutionsare expected to drive OMC’s profitability and revenue growth.
The shareholder-friendly policies of Omnicom are proving to be the driving force for the company’s success. The company has paid $611.4 million as share repurchase in 2022. The same for 2021 and 2020 were $527.3 million and $222 million, respectively. The company paid $581.1 million as dividends in 2022 whereas for 2021 and 2020 it was $592.3 million and $562.7 million, respectively. These initiatives reaffirm investors’ faith in the stock. The liquidity and balance sheet are supportive of the company’s dividend decisions, share repurchases and acquisitions.
For first-quarter 2023, ICFI’s earnings are expected to increase 7.6% from the year-ago reported figure to $1.41. The company’s earnings are expected to grow 9.2% on a year-over-year basis in 2023.
The Zacks Consensus Estimate for the company’s first-quarter 2023 earnings is pegged at $1.41, which has been revised upward 6% in the past 60 days. The consensus estimate for the full year is $6.3 per share. This has been revised upward 7.3% in the past 60 days. The company currently sports a Zacks Rank of 1.
The Zacks Consensus Estimate for IT’s first-quarter 2023 earnings is pegged at $2.04, which has been revised upward 3% in the past 60 days. The consensus estimate for the full year is $9.49 per share which has been revised slightly upward in the past 60 days. The company currently carries a Zacks Rank of 2.
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Why You Should Start Adding Omnicom (OMC) to Your Portfolio
Omnicom Group, Inc(OMC - Free Report) is a advertising and marketing service provider that has performed extremely well over the past year and has the potential to sustain momentum in the near term. Consequently, if you haven’t taken advantage of the share price appreciation yet, it’s time you add the stock to your portfolio.
What Makes OMC an Attractive Pick?
An Outperformer: The company’s price trend reveals that the stock has had an impressive run over the past six months. Omnicom has outperformed the Zacks industry in the same time frame. The stock has surged 43.4% compared with the industry's 35.1% increase and 11.9% uptick of the Zacks S&P 500 composite in the past six months.
Omnicom Group Inc. Price
Omnicom Group Inc. price | Omnicom Group Inc. Quote
Solid Rank: OMC currently sports a Zacks Rank #1 (Strong Buy) and has a VGM Score of A. Our research shows that stocks with a VGM Score of A or B, when combined with a Zacks Rank of 1 or 2 (Buy), offer the best investment opportunities. Thus, the company appears to be a compelling investment proposition at the moment. You can see the complete list of today’s Zacks #1 Rank stocks here.
Northward Estimate Revisions: Earnings growth and stock price gains often indicate a company’s prospects. For the full year 2023, the earnings are pegged at $7.17. This has been revised upward13.5% in the past 60 days.The favorable estimate revision reflects the confidence of brokers in the stock.
Positive Earnings Surprise History: The company has an impressive earning surprise history, beating the Zacks Consensus Estimate in the four trailing quarters with an average surprise of 8%.
Bullish Industry Rank: The industry to which Omnicom Group belongs currently has a Zacks Industry Rank of 27 (of 249 groups). Such a solid rank places the industry in the top 11% of the Zacks industries. Studies show that 50% of a stock price movement is directly tied to the performance of the industry group that it hails from.
In fact, a mediocre stock in a healthy group is likely to outperform a robust stock in a poor industry. Therefore, taking the industry’s performance into account becomes necessary.
Growth Factors: OMC has been benefiting from its internal strengths in the form of operational efficiency through investments in real estate and the value chain. Omnicom is banking on organic growth which is helping the company to earn greater revenues. The company has also been making selective acquisitions.
The company is also supported by divestments and reorganization of underperforming and non-core businesses. The diverse operations of the business along with its customer-centric strategic business solutionsare expected to drive OMC’s profitability and revenue growth.
The shareholder-friendly policies of Omnicom are proving to be the driving force for the company’s success. The company has paid $611.4 million as share repurchase in 2022. The same for 2021 and 2020 were $527.3 million and $222 million, respectively. The company paid $581.1 million as dividends in 2022 whereas for 2021 and 2020 it was $592.3 million and $562.7 million, respectively. These initiatives reaffirm investors’ faith in the stock. The liquidity and balance sheet are supportive of the company’s dividend decisions, share repurchases and acquisitions.
Other Stocks to Consider
Some other top-ranked stocks in the Zacks Business Services sector are ICF International (ICFI - Free Report) and Gartner, Inc. (IT - Free Report) .
For first-quarter 2023, ICFI’s earnings are expected to increase 7.6% from the year-ago reported figure to $1.41. The company’s earnings are expected to grow 9.2% on a year-over-year basis in 2023.
The Zacks Consensus Estimate for the company’s first-quarter 2023 earnings is pegged at $1.41, which has been revised upward 6% in the past 60 days. The consensus estimate for the full year is $6.3 per share. This has been revised upward 7.3% in the past 60 days. The company currently sports a Zacks Rank of 1.
The Zacks Consensus Estimate for IT’s first-quarter 2023 earnings is pegged at $2.04, which has been revised upward 3% in the past 60 days. The consensus estimate for the full year is $9.49 per share which has been revised slightly upward in the past 60 days. The company currently carries a Zacks Rank of 2.