We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Here's Why You Should Retain Omnicom Group (OMC) for Now
Read MoreHide Full Article
Omnicom Group Inc. (OMC - Free Report) , with its diversified presence in advertising and marketing, improves adaptability in a dynamic industry. A rising current ratio signals a positive outlook. The company's expansive global presence exposes it to potential risks arising from currency exchange rate fluctuations.
Factors in Favor
Omnicom remains dedicated to its internal growth strategies, with a strong emphasis on enhancing operational efficiency. The company has been actively allocating resources toward real estate, back-office services, procurement, and IT to drive this objective. Additionally, investments are being made in the areas of data, analytics, and precision marketing. As a result of these favorable developments, we anticipate that Omnicom will experience increased revenues due to organic growth.
Omnicom's current ratio (a measure of liquidity) at the end of the second quarter of 2023 was pegged at 0.96, which is higher than the current ratio of 0.95 in the year-ago reported quarter. Increasing current ratio indicates the company is not likely to face any problem in meeting its short-term debt obligations.
Omnicom has a reliable track record of delivering value to its shareholders through dividends and share buybacks. In 2022, the company distributed $581.1 million in dividends and repurchased shares totaling $611.4 million. In 2021, Omnicom paid out $592.3 million in dividends and conducted share repurchases of $527.3 million. In 2020, it allocated $562.7 million for dividends and invested $222 million in share repurchases. These actions not only inspire investor confidence but also have a favorable impact on earnings per share.
Key Risk
In 2022, Omnicom, a global corporation, generated about 48% of its revenues from international operations. It has a significant presence in key international markets like the Eurozone, the United Kingdom, Australia, Brazil, Canada, China, and Japan. Omnicom conducts business in more than 50 different currencies apart from the U.S. dollar. However, this extensive global footprint also exposes the company to risks related to fluctuations in foreign exchange rates. In 2022, these fluctuations resulted in a $681 million or 4.8% reduction in revenues.
Zacks Rank and Stocks to Consider
OMC currently holds a Zacks Rank #3 (Hold).
The following better-ranked stocks from the Business Services sector are worth consideration:
Verisk Analytics(VRSK - Free Report) beat the Zacks Consensus Estimate in three of the last four quarters and matched on one instance, with an average surprise of 9.9% The consensus mark for 2023 revenues is pegged at $2.66 billion, suggesting a decrease of 8.2% from the year-ago figure. The consensus estimate for 2023 earnings is pegged at $5.71 per share, indicating a 14% rise from 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 of 2. It outpaced the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 3.1%. The consensus estimate for fiscal 2023 revenues and earnings implies growth of 8.4% and 11.1%, respectively.
Broadridge(BR - Free Report) currently carries a Zacks Rank of 2. It surpassed the Zacks Consensus Estimate in two of the trailing four quarters, missed once and matched on one instance, the average surprise being 0.5%. The consensus estimate for fiscal 2024 revenues and earnings predicts growth of 9.3% and 8.8%, respectively.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Here's Why You Should Retain Omnicom Group (OMC) for Now
Omnicom Group Inc. (OMC - Free Report) , with its diversified presence in advertising and marketing, improves adaptability in a dynamic industry. A rising current ratio signals a positive outlook. The company's expansive global presence exposes it to potential risks arising from currency exchange rate fluctuations.
Factors in Favor
Omnicom remains dedicated to its internal growth strategies, with a strong emphasis on enhancing operational efficiency. The company has been actively allocating resources toward real estate, back-office services, procurement, and IT to drive this objective. Additionally, investments are being made in the areas of data, analytics, and precision marketing. As a result of these favorable developments, we anticipate that Omnicom will experience increased revenues due to organic growth.
Omnicom's current ratio (a measure of liquidity) at the end of the second quarter of 2023 was pegged at 0.96, which is higher than the current ratio of 0.95 in the year-ago reported quarter. Increasing current ratio indicates the company is not likely to face any problem in meeting its short-term debt obligations.
Omnicom Group Inc. Revenue (TTM)
Omnicom Group Inc. revenue-ttm | Omnicom Group Inc. Quote
Omnicom has a reliable track record of delivering value to its shareholders through dividends and share buybacks. In 2022, the company distributed $581.1 million in dividends and repurchased shares totaling $611.4 million. In 2021, Omnicom paid out $592.3 million in dividends and conducted share repurchases of $527.3 million. In 2020, it allocated $562.7 million for dividends and invested $222 million in share repurchases. These actions not only inspire investor confidence but also have a favorable impact on earnings per share.
Key Risk
In 2022, Omnicom, a global corporation, generated about 48% of its revenues from international operations. It has a significant presence in key international markets like the Eurozone, the United Kingdom, Australia, Brazil, Canada, China, and Japan. Omnicom conducts business in more than 50 different currencies apart from the U.S. dollar. However, this extensive global footprint also exposes the company to risks related to fluctuations in foreign exchange rates. In 2022, these fluctuations resulted in a $681 million or 4.8% reduction in revenues.
Zacks Rank and Stocks to Consider
OMC currently holds a Zacks Rank #3 (Hold).
The following better-ranked stocks from the Business Services sector are worth consideration:
Verisk Analytics(VRSK - Free Report) beat the Zacks Consensus Estimate in three of the last four quarters and matched on one instance, with an average surprise of 9.9% The consensus mark for 2023 revenues is pegged at $2.66 billion, suggesting a decrease of 8.2% from the year-ago figure. The consensus estimate for 2023 earnings is pegged at $5.71 per share, indicating a 14% rise from 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 of 2. It outpaced the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 3.1%. The consensus estimate for fiscal 2023 revenues and earnings implies growth of 8.4% and 11.1%, respectively.
Broadridge(BR - Free Report) currently carries a Zacks Rank of 2. It surpassed the Zacks Consensus Estimate in two of the trailing four quarters, missed once and matched on one instance, the average surprise being 0.5%. The consensus estimate for fiscal 2024 revenues and earnings predicts growth of 9.3% and 8.8%, respectively.