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Are Investors Undervaluing Omnicom Group (OMC) Right Now?
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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company to watch right now is Omnicom Group (OMC - Free Report) . OMC is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.
Another valuation metric that we should highlight is OMC's P/B ratio of 4.66. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 11.70. Over the past year, OMC's P/B has been as high as 5.32 and as low as 3.79, with a median of 4.65.
Finally, our model also underscores that OMC has a P/CF ratio of 11.03. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 11.24. Over the past year, OMC's P/CF has been as high as 12.48 and as low as 8.98, with a median of 11.01.
Value investors will likely look at more than just these metrics, but the above data helps show that Omnicom Group is likely undervalued currently. And when considering the strength of its earnings outlook, OMC sticks out at as one of the market's strongest value stocks.
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Are Investors Undervaluing Omnicom Group (OMC) Right Now?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company to watch right now is Omnicom Group (OMC - Free Report) . OMC is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.
Another valuation metric that we should highlight is OMC's P/B ratio of 4.66. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 11.70. Over the past year, OMC's P/B has been as high as 5.32 and as low as 3.79, with a median of 4.65.
Finally, our model also underscores that OMC has a P/CF ratio of 11.03. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 11.24. Over the past year, OMC's P/CF has been as high as 12.48 and as low as 8.98, with a median of 11.01.
Value investors will likely look at more than just these metrics, but the above data helps show that Omnicom Group is likely undervalued currently. And when considering the strength of its earnings outlook, OMC sticks out at as one of the market's strongest value stocks.