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Omnicom Group (OMC) Gains From Shareholder-Friendly Policies
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Omnicom Group Inc’s. (OMC - Free Report) commitment to internal development initiatives, the consistent and diversified nature of its operations, and its heightened emphasis on delivering consumer-centric strategic business solutions are the key factors contributing to its enduring profitability. Furthermore, the bolstering liquidity position augurs well for the company's prospects.
Omnicom Group has grown 20.9% in the past year, outperforming its industry’s 7.7% growth and 13.8% growth of the S&P 500 composite.
Factors in Favor
Omnicom's internal development moves involve strategic investments in real estate, back-office services, procurement, IT infrastructure, and significant enhancements in data analytics and precision marketing. These actions have positioned the company for long-term revenue growth through organic expansion.
Omnicom has a strong history of delivering value to its shareholders through dividends and share buybacks. In 2022, the company distributed $581.1 million in dividends and repurchased shares worth $611.4 million. In 2021, Omnicom paid out $592.3 million in dividends and bought back shares totaling $527.3 million. In 2020, the company allocated $562.7 million for dividends and $222 million for share repurchases. These actions not only boost investor confidence but also have a favorable impact on earnings per share.
Omnicom's presence in various segments of the advertising and marketing industry not only diversifies its revenue streams but also equips it with the flexibility and expertise needed to effectively navigate the ever-evolving and dynamic marketing landscape.
Omnicom's current ratio (a measure of liquidity) at the end of the second quarter of 2023 was pegged at 0.96, higher than the current ratio of 0.95 in the year-ago reported quarter. It indicates the company is is not likely to face any problem in meeting its short-term debt obligations.
Factors Against
Omnicom, a global corporation, derived approximately 48% of its revenues from international operations in 2022. It maintains a strong presence in key international markets, including the Eurozone, the United Kingdom, Australia, Brazil, Canada, China, and Japan, conducting business transactions in over 50 different currencies besides the U.S. dollar. This extensive global footprint exposes the company to potential risks stemming from fluctuations in foreign exchange rates.
Due to internal restructuring and a focus on cost savings, certain sectors like technology and telecommunications have temporarily curtailed their expenditures. This is likely to have a ripple effect on the company's precision marketing segment, potentially causing some challenges or disruptions in that area.
OMC currently has a Zacks Rank #3 (Hold)
Stocks to Consider
Here are a few better-ranked stocks from the Business Services sector.
DocuSign (DOCU - Free Report) has beaten the Zacks Consensus Estimate in all the four trailing quarters and has an earning surprise of 25.6%. The current consensus estimate for revenues indicates an 8.1% increase from the year-ago figure. The consensus mark for earnings is pegged at $2.52 per share, indicating 24.1% year-over-year growth. DOCU currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
CRA International (CRAI - Free Report) has beaten the Zacks Consensus Estimate in two of the four trailing quarters and missed on two instances, the earning surprise being 5.1%. The current Zacks Consensus Estimate for revenues indicates an 6.6% increase from the year-ago figure. The consensus mark for earnings is pegged at $5.49 per share, indicating 7.6% year-over-year decline. CRAI has a Zacks Rank #2 (Buy) at present.
ABM Industries (ABM - Free Report) has beaten the Zacks Consensus Estimate in all the four trailing quarters and has an earning surprise of 2.64%. The current Zacks Consensus Estimate for revenues indicates an 3.5% increase from the year-ago figure. The consensus mark for earnings is pegged at $3.51 per share, indicating 4.1% year-over-year decline. ABM carries a Zacks Rank of 2 at present.
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Omnicom Group (OMC) Gains From Shareholder-Friendly Policies
Omnicom Group Inc’s. (OMC - Free Report) commitment to internal development initiatives, the consistent and diversified nature of its operations, and its heightened emphasis on delivering consumer-centric strategic business solutions are the key factors contributing to its enduring profitability. Furthermore, the bolstering liquidity position augurs well for the company's prospects.
Omnicom Group has grown 20.9% in the past year, outperforming its industry’s 7.7% growth and 13.8% growth of the S&P 500 composite.
Factors in Favor
Omnicom's internal development moves involve strategic investments in real estate, back-office services, procurement, IT infrastructure, and significant enhancements in data analytics and precision marketing. These actions have positioned the company for long-term revenue growth through organic expansion.
Omnicom Group Inc. Price
Omnicom Group Inc. price | Omnicom Group Inc. Quote
Omnicom has a strong history of delivering value to its shareholders through dividends and share buybacks. In 2022, the company distributed $581.1 million in dividends and repurchased shares worth $611.4 million. In 2021, Omnicom paid out $592.3 million in dividends and bought back shares totaling $527.3 million. In 2020, the company allocated $562.7 million for dividends and $222 million for share repurchases. These actions not only boost investor confidence but also have a favorable impact on earnings per share.
Omnicom's presence in various segments of the advertising and marketing industry not only diversifies its revenue streams but also equips it with the flexibility and expertise needed to effectively navigate the ever-evolving and dynamic marketing landscape.
Omnicom's current ratio (a measure of liquidity) at the end of the second quarter of 2023 was pegged at 0.96, higher than the current ratio of 0.95 in the year-ago reported quarter. It indicates the company is is not likely to face any problem in meeting its short-term debt obligations.
Factors Against
Omnicom, a global corporation, derived approximately 48% of its revenues from international operations in 2022. It maintains a strong presence in key international markets, including the Eurozone, the United Kingdom, Australia, Brazil, Canada, China, and Japan, conducting business transactions in over 50 different currencies besides the U.S. dollar. This extensive global footprint exposes the company to potential risks stemming from fluctuations in foreign exchange rates.
Due to internal restructuring and a focus on cost savings, certain sectors like technology and telecommunications have temporarily curtailed their expenditures. This is likely to have a ripple effect on the company's precision marketing segment, potentially causing some challenges or disruptions in that area.
OMC currently has a Zacks Rank #3 (Hold)
Stocks to Consider
Here are a few better-ranked stocks from the Business Services sector.
DocuSign (DOCU - Free Report) has beaten the Zacks Consensus Estimate in all the four trailing quarters and has an earning surprise of 25.6%. The current consensus estimate for revenues indicates an 8.1% increase from the year-ago figure. The consensus mark for earnings is pegged at $2.52 per share, indicating 24.1% year-over-year growth. DOCU currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
CRA International (CRAI - Free Report) has beaten the Zacks Consensus Estimate in two of the four trailing quarters and missed on two instances, the earning surprise being 5.1%. The current Zacks Consensus Estimate for revenues indicates an 6.6% increase from the year-ago figure. The consensus mark for earnings is pegged at $5.49 per share, indicating 7.6% year-over-year decline. CRAI has a Zacks Rank #2 (Buy) at present.
ABM Industries (ABM - Free Report) has beaten the Zacks Consensus Estimate in all the four trailing quarters and has an earning surprise of 2.64%. The current Zacks Consensus Estimate for revenues indicates an 3.5% increase from the year-ago figure. The consensus mark for earnings is pegged at $3.51 per share, indicating 4.1% year-over-year decline. ABM carries a Zacks Rank of 2 at present.