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Omnicom (OMC) Rises 17% 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 17%, outperforming the 6.1% rise of the industry it belongs to and the 15.6% 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 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.

Omnicom 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. The company 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 Stocks to Consider

Omnicom currently carries a Zacks Rank #3 (Hold).

Here are some better-ranked stocks from the broader Business Service sector.

Verisk Analytics (VRSK - Free Report) beat the Zacks Consensus Estimate in three of the four previous quarters and matched on one instance, with an average of 9.9%. The consensus mark for 2023 revenues is pegged at $2.66 billion, which indicates a decrease of 8.2% from the year-ago figure. Earnings are pegged at $5.71 for 2023, which is 14% above the year-ago figure. VRSK currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Automatic Data (ADP - Free Report) currently has a Zacks Rank #2. The company beat the Zacks Consensus Estimate in all the trailing four quarters, the average being 3.1%. The consensus estimate for fiscal 2024 revenues and earnings implies growth of 6.3% and 11.1%, respectively.

Broadridge (BR - Free Report) currently carries a Zacks Rank #2. It beat the Zacks Consensus Estimate in two of the trailing four quarters, missed once and matched on the other instance, the average being 0.5%. The Zacks Consensus Estimate for fiscal 2024 revenues and earnings indicates a rise of 7.2% and 8.8%, respectively.

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