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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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 value investors might notice is Omnicom Group (OMC - Free Report) . OMC is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 8.41. This compares to its industry's average Forward P/E of 9.36. Over the last 12 months, OMC's Forward P/E has been as high as 12.75 and as low as 8.00, with a median of 9.65.
Another valuation metric that we should highlight is OMC's P/B ratio of 2.88. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 4.29. Over the past 12 months, OMC's P/B has been as high as 4.84 and as low as 2.71, with a median of 3.34.
Finally, investors will want to recognize that OMC has a P/CF ratio of 9.11. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 10.24. Over the past year, OMC's P/CF has been as high as 12.32 and as low as 8.13, with a median of 9.45.
If you're looking for another solid Advertising and Marketing value stock, take a look at Stagwell Inc. (STGW - Free Report) . STGW is a Zacks Rank of #2 (Buy) stock with a Value score of A.
Stagwell Inc. sports a P/B ratio of 1.71 as well; this compares to its industry's price-to-book ratio of 4.29. In the past 52 weeks, STGW's P/B has been as high as 2.87, as low as 1.42, with a median of 2.06.
These are only a few of the key metrics included in Omnicom Group and Stagwell Inc. strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, OMC and STGW look like an impressive value stock at the moment.
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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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 value investors might notice is Omnicom Group (OMC - Free Report) . OMC is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 8.41. This compares to its industry's average Forward P/E of 9.36. Over the last 12 months, OMC's Forward P/E has been as high as 12.75 and as low as 8.00, with a median of 9.65.
Another valuation metric that we should highlight is OMC's P/B ratio of 2.88. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 4.29. Over the past 12 months, OMC's P/B has been as high as 4.84 and as low as 2.71, with a median of 3.34.
Finally, investors will want to recognize that OMC has a P/CF ratio of 9.11. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 10.24. Over the past year, OMC's P/CF has been as high as 12.32 and as low as 8.13, with a median of 9.45.
If you're looking for another solid Advertising and Marketing value stock, take a look at Stagwell Inc. (STGW - Free Report) . STGW is a Zacks Rank of #2 (Buy) stock with a Value score of A.
Stagwell Inc. sports a P/B ratio of 1.71 as well; this compares to its industry's price-to-book ratio of 4.29. In the past 52 weeks, STGW's P/B has been as high as 2.87, as low as 1.42, with a median of 2.06.
These are only a few of the key metrics included in Omnicom Group and Stagwell Inc. strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, OMC and STGW look like an impressive value stock at the moment.