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Here's Why You Should Invest in Omnicom Group (OMC) Stock

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A wise investment decision involves buying well-performing stocks at the right time while selling those that are at risk. A rise in share price and strong fundamentals signal a stock’s bullish run.

Omnicom Group Inc. (OMC - Free Report) has performed decently in the past year and has the potential to sustain the momentum, going forward. Therefore, if you haven’t taken advantage of the share price appreciation yet, it’s time you add the stock to your portfolio.

Why an Attractive Pick?

Share Price Movement: A glimpse at this advertising and marketing company’s price trend reveals that the stock has had a decent run on the bourse over the past year. Omnicom’s shares have gained 6.5% against the 9.8% decline of the industry it belongs to.

Solid Zacks Rank: Omnicomhas a Zacks Rank #2 (Buy). Our research shows that stocks with a Zacks Rank #1 (Strong Buy) or #2 offer attractive investment opportunities for investors. You can see the complete list of today’s Zacks #1 Rank stocks here.

Northward Estimate Revisions: Four estimates for 2019 have moved north in the past 60 days versus no downward revision, which reflects analysts’ confidence in the company. Over the same period, the Zacks Consensus Estimate for 2019 moved up 1.4%.

Positive Earnings Surprise History: Omnicomhas an impressive earnings surprise history. The company outpaced the consensus mark in all of the trailing four quarters, delivering a positive average earnings surprise of 5.3%.

Strong Growth Prospects:The Zacks Consensus Estimate for 2019 earnings is currently pegged at $5.94 cents, reflecting year-over-year growth of 3.3%. Moreover, earnings are expected to register 5.9% growth in 2020. The stock has long-term expected earnings per share (EPS) growth rate of 4.7%.

Growth Factors:  Omnicom continues to focus on its internal development initiatives. The company is investing in real estate, back office services, procurement, IT, data, analytics and precision marketing. These investments are expected to generate significant organic growth.

Omnicom’s bottom line is in good shape as it has been divesting underperforming and non-core businesses and reorganizing to meet clients’ ever-changing needs. We believe that consistency and diversity of operations and increased focus on delivering consumer-centric strategic business solutions ensure persistent profitability for Omnicom.

Other Stocks to Consider

Some other top-ranked stocks in the broader Zacks Business Services sector are Huron Consulting Group (HURN - Free Report) , FLEETCOR Technologies and Global Payments (GPN - Free Report) , each carrying a Zacks Rank #2.

The long-term expected EPS (three to five years) growth rate for Huron, FLEETCOR and Global Payments is 13.5%, 15.4% and 17%, respectively.

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Omnicom Group Inc. (OMC) - free report >>

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