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Is Omnicom (OMC) a Great Value Stock Right Now?

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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find 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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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 stock to keep an eye on is Omnicom (OMC - Free Report) . OMC is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.

Investors should also recognize that OMC has a P/B ratio of 5.37. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. OMC's current P/B looks attractive when compared to its industry's average P/B of 12.40. Over the past year, OMC's P/B has been as high as 6.13 and as low as 4.96, with a median of 5.40.

Finally, investors should note that OMC has a P/CF ratio of 10.65. 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. OMC's P/CF compares to its industry's average P/CF of 17.96. OMC's P/CF has been as high as 12.90 and as low as 10.24, with a median of 11.69, all within the past year.

These are only a few of the key metrics included in Omnicom's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, OMC looks like an impressive value stock at the moment.


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