70.1 F
New York
Tuesday, September 29, 2020

Omnicom Group Inc. (NYSE:OMC) on the Path to Ruin

Must read

Packaging Corporation of America (NYSE:PKG) Finding Strong Support

Packaging Corporation of America (PKG) shares are trading at higher $109.44 and the avg recommendation for the stock is Moderate Buy, while the current...

Maxeon Solar Technologies Ltd. (NASDAQ:MAXN) on the Path to Profitability

Maxeon Solar Technologies Ltd. (MAXN) shares are trading at higher $14.38 and the avg recommendation for the stock is Hold, while the current analyst...

The Unprecedented Rise of Mueller Water Products Inc. (NYSE:MWA)

Mueller Water Products Inc. (MWA) shares are trading at higher $10.34 and the avg recommendation for the stock is Moderate Buy, while the current...

Investor Confidence is Rising for Guardant Health Inc. (NASDAQ:GH)

Guardant Health Inc. (GH) shares are trading at higher $111.80 and the avg recommendation for the stock is Strong Buy, while the current analyst...

The Omnicom Group Inc. (OMC) shares are trading at lower $53.60 and the avg recommendation for the stock is Hold. The current analyst price target stands at $57.05.

To add more color to this target, the company’s high over the last year is $85.05 and the low is $46.37. Over the last 52 weeks, OMC is down -36.98% while the S&P 500 is up 0.76%. The catalyst for this interesting swing was the company’s recent earnings report.

A Notable Earnings Report

In the last quarter, OMC reported a profit of $564.0 million. Omnicom Group Inc. also saw revenues increase to $3.41 billion. In addition, OMC has free cash flow of -$1.01 billion as of 03-2020 The company’s EBITDA came in at $473.1 million which compares well with its peers.

OMC booked profit margins of 9.00%, its Return on Equity (ROE) is 52.40%, and its Return on Assets is 5.40%. All told, it is clear that, OMC needs to be on your watchlist.

Find out when OMC reaches critical levels. Subscribe to OracleDispatch.com Right Now by entering your Email in the box below.

Of course, we must look beyond the financials and question how well those numbers represent the sustainable earnings power of the business. Investors need to know how sustainable this current run. OMC has a short ratio of 6.35 and outstanding shares of 216.60M.

Company Outlook

OMC has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 2.21 million and more growth is possible in the weeks ahead. Traders will also note the company’s earnings per share came in at 6.08. Omnicom Group Inc. OMC also noted assets of $23.68 billion at the end of the last quarter. Investors should also keep an eye on sector updates as OMC has historically followed its peers on positive news.

All told, Omnicom Group Inc. OMC has strung together solid data and demonstrated underlying fundamentals. At its current valuation, OMC represents an interesting risk/reward case. Traders should stay tuned to see if this recent report will push the stock to test recent resistance levels.

Omnicom Group Inc. OMC is now commanding a market cap of 11.47B and a float of 212.51M. OMC is increasing its credibility in this sector and that could lead to more upside down the line. Sign-up for continuing coverage on shares of OMC stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!

Disclosure: we hold no position in OMC, either long or short, and we have not been compensated for this article.

Latest article

Is Now the Time to Invest in Copart Inc. (NASDAQ:CPRT)?

Copart Inc. (CPRT) shares are trading at higher $104.26 and the avg recommendation for the stock is Moderate Buy, while the current analyst price...

Alphatec Holdings Inc. (NASDAQ:ATEC) is Holding Steady

Alphatec Holdings Inc. (ATEC) shares are trading at higher $6.94 and the avg recommendation for the stock is Strong Buy, while the current analyst...

Investor Confidence is Rising for Ecolab Inc. (NYSE:ECL)

Ecolab Inc. (ECL) shares are trading at higher $196.03 and the avg recommendation for the stock is Moderate Buy, while the current analyst price...

Ryanair Holdings plc (NASDAQ:RYAAY) is Gaining Momentum on Earnings Catalyst

Ryanair Holdings plc (RYAAY) shares are trading at higher $81.71 and the avg recommendation for the stock is Strong Buy, while the current analyst...

The Rejuvenation of Agilent Technologies Inc. (NYSE:A)

Agilent Technologies Inc. (A) shares are trading at higher $97.69 and the avg recommendation for the stock is Moderate Buy, while the current analyst...