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Omnicom (OMC) Rises 43% in a Year: What You Should Know
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Omnicom Group Inc. (OMC - Free Report) has had an impressive run over the past year. The stock has gained 42.9%, outperforming the 18.7% rise of the industry it belongs to and the 12.9% rally of the Zacks S&P 500 composite.
What’s Driving the Stock
Omnicom is currently benefiting from new business wins and remains focused on integrating creativity, digital technology and data for developing marketing solutions that are capable of catering to the business transformation needs of clients.
The company posted better-than-expected earnings and revenue performance in the last four quarters, driven by strong performance across global geographies and continued strength in faster-growing disciplines. Consistency and diversity of Omnicom's operations and increased focus on delivering consumer-centric strategic business solutions ensure long-term profitability for the company.
The company has a consistent record of returning value to shareholders in the form of dividends and share repurchases. In 2022, 2021 and 2020, Omnicom paid dividends of $581.1 million, $592.3 million and $562.7 million, respectively. It repurchased shares worth $611.4 million, $527.3 million and $222 million in 2022, 2021 and 2020, respectively. Such moves not only instill investors’ confidence but also positively impact earnings per share.
Zacks Rank and Other Stocks to Consider
Omnicom currently carries a Zacks Rank #2 (Buy).
Investors interested in the broader Zacks Business Services industry can consider the following top-ranked stocks:
Avis Budget (CAR - Free Report) : For second-quarter 2023, the Zacks Consensus Estimate for Green Dot’s revenues suggests a decline of 1.6% year over year to $3.19 billion and the same for earnings indicates a 39.5% plunge to $9.65 per share. The company has an impressive earnings surprise history, beating the consensus mark in all the trailing four quarters, the average surprise being 65.2%.
Maximus (MMS - Free Report) : For second-quarter 2023, the Zacks Consensus Estimate for Maximus’ revenues suggests an increase of 6.9% year over year to $1.2 billion and the same for earnings indicates a 46.2% rise to $1.14 per share. The company has an impressive earnings surprise history, beating the consensus mark in three instances and missing once, the average surprise being 9.6%.
MMS has a VGM Score of B and with a Zacks Rank of 1.
Rollins (ROL - Free Report) : For second-quarter 2023, the Zacks Consensus Estimate for Rollins’ revenues suggests growth of 12.6% year over year to $803.6 million and the same for earnings indicates a 15% increase to 23 cents per share. The company has an impressive earnings surprise history, beating the consensus mark in three of the four trailing quarters and missing once, the average surprise being 5.53%.
ROL currently carries a Zacks Rank of 2 and a Growth Score of A.
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Omnicom (OMC) Rises 43% in a Year: What You Should Know
Omnicom Group Inc. (OMC - Free Report) has had an impressive run over the past year. The stock has gained 42.9%, outperforming the 18.7% rise of the industry it belongs to and the 12.9% rally of the Zacks S&P 500 composite.
What’s Driving the Stock
Omnicom is currently benefiting from new business wins and remains focused on integrating creativity, digital technology and data for developing marketing solutions that are capable of catering to the business transformation needs of clients.
Omnicom Group Inc. Price
Omnicom Group Inc. price | Omnicom Group Inc. Quote
The company posted better-than-expected earnings and revenue performance in the last four quarters, driven by strong performance across global geographies and continued strength in faster-growing disciplines. Consistency and diversity of Omnicom's operations and increased focus on delivering consumer-centric strategic business solutions ensure long-term profitability for the company.
The company has a consistent record of returning value to shareholders in the form of dividends and share repurchases. In 2022, 2021 and 2020, Omnicom paid dividends of $581.1 million, $592.3 million and $562.7 million, respectively. It repurchased shares worth $611.4 million, $527.3 million and $222 million in 2022, 2021 and 2020, respectively. Such moves not only instill investors’ confidence but also positively impact earnings per share.
Zacks Rank and Other Stocks to Consider
Omnicom currently carries a Zacks Rank #2 (Buy).
Investors interested in the broader Zacks Business Services industry can consider the following top-ranked stocks:
Avis Budget (CAR - Free Report) : For second-quarter 2023, the Zacks Consensus Estimate for Green Dot’s revenues suggests a decline of 1.6% year over year to $3.19 billion and the same for earnings indicates a 39.5% plunge to $9.65 per share. The company has an impressive earnings surprise history, beating the consensus mark in all the trailing four quarters, the average surprise being 65.2%.
CAR has a VGM Score of A and a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Maximus (MMS - Free Report) : For second-quarter 2023, the Zacks Consensus Estimate for Maximus’ revenues suggests an increase of 6.9% year over year to $1.2 billion and the same for earnings indicates a 46.2% rise to $1.14 per share. The company has an impressive earnings surprise history, beating the consensus mark in three instances and missing once, the average surprise being 9.6%.
MMS has a VGM Score of B and with a Zacks Rank of 1.
Rollins (ROL - Free Report) : For second-quarter 2023, the Zacks Consensus Estimate for Rollins’ revenues suggests growth of 12.6% year over year to $803.6 million and the same for earnings indicates a 15% increase to 23 cents per share. The company has an impressive earnings surprise history, beating the consensus mark in three of the four trailing quarters and missing once, the average surprise being 5.53%.
ROL currently carries a Zacks Rank of 2 and a Growth Score of A.