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Should Value Investors Buy Omnicom Group (OMC) Stock?
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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality 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 9.23. 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 ratio is used to compare a stock's market value with 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 4.04. 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 should note that OMC has a P/CF ratio of 9.11. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 9.66. Over the past 52 weeks, OMC's P/CF has been as high as 12.32 and as low as 8.13, with a median of 9.45.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Omnicom Group is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, OMC feels like a great value stock at the moment.
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Should Value Investors Buy Omnicom Group (OMC) Stock?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality 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 9.23. 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 ratio is used to compare a stock's market value with 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 4.04. 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 should note that OMC has a P/CF ratio of 9.11. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 9.66. Over the past 52 weeks, OMC's P/CF has been as high as 12.32 and as low as 8.13, with a median of 9.45.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Omnicom Group is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, OMC feels like a great value stock at the moment.