Yahoo Finance Here's Why Omnicom (OMC) is a Strong Value Stock
For new and old investors, taking full advantage of the stock market and investing with confidence are common goals.
Achieving those goals is made easier with the Zacks Style Scores, a unique set of guidelines that rates stocks based on popular investing methodologies, namely value, growth, and momentum. The Style Scores can help you narrow down which stocks are better for your portfolio and which ones can beat the market over the long-term.
Why Investors Should Pay Attention to This Value Stock
Different than growth or momentum investors, value-focused investors are all about finding good stocks at good prices, and discovering which companies are trading under what their true value is before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to help pick out the most attractive and discounted stocks.
Omnicom (OMC)
New York based Omnicom is one of the largest advertising, marketing and corporate communications companies in the world. The company’s agencies operate in all the major markets across the globe and provide an extensive range of services. Areas of operation include North America, Latin America, Europe, the Middle East, Australia, China, India, Japan, Korea, Africa, New Zealand, Singapore, and other Asian countries.
OMC is a Zacks Rank #2 (Buy) stock, with a Value Style Score of A and VGM Score of B. Shares are currently trading at a forward P/E of 12.3X for the current fiscal year compared to the Advertising and Marketing industry's P/E of 13.8X. Additionally, OMC has a PEG Ratio of 2.3 and a Price/Cash Flow ratio of 11.1X. Value investors should also note OMC's Price/Sales ratio of 1.3X.
A company's earnings performance is important for value investors as well. For fiscal 2024, four analysts revised their earnings estimate higher in the last 60 days for OMC, while the Zacks Consensus Estimate has increased $0.17 to $7.81 per share. OMC also holds an average earnings surprise of 3.2%.
Investors should take the time to consider OMC for their portfolios due to its solid Zacks Ranks, notable earnings and valuation metrics, and impressive Value and VGM Style Scores.
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Omnicom Group Inc. (OMC) : Free Stock Analysis Report
