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Are Business Services Stocks Lagging Omnicom Group (OMC) This Year?

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The Business Services group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Is Omnicom (OMC - Free Report) one of those stocks right now? Let's take a closer look at the stock's year-to-date performance to find out.

Omnicom is one of 335 individual stocks in the Business Services sector. Collectively, these companies sit at #4 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.

The Zacks Rank is a proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. Omnicom is currently sporting a Zacks Rank of #2 (Buy).

The Zacks Consensus Estimate for OMC's full-year earnings has moved 13.8% higher within the past quarter. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

Based on the latest available data, OMC has gained about 6.7% so far this year. In comparison, Business Services companies have returned an average of 0.8%. This means that Omnicom is outperforming the sector as a whole this year.

Another Business Services stock, which has outperformed the sector so far this year, is Visa (V - Free Report) . The stock has returned 8.8% year-to-date.

In Visa's case, the consensus EPS estimate for the current year increased 1.8% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Breaking things down more, Omnicom is a member of the Advertising and Marketing industry, which includes 16 individual companies and currently sits at #65 in the Zacks Industry Rank. On average, stocks in this group have gained 4.1% this year, meaning that OMC is performing better in terms of year-to-date returns.

Visa, however, belongs to the Financial Transaction Services industry. Currently, this 37-stock industry is ranked #46. The industry has moved +7.4% so far this year.

Investors interested in the Business Services sector may want to keep a close eye on Omnicom and Visa as they attempt to continue their solid performance.

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