53.9 F
New York
Wednesday, October 28, 2020

The Unprecedented Rise of Omnicom Group Inc. (NYSE:OMC)

Must read

Exela Technologies Inc. (NASDAQ:XELA) is Gaining Momentum on Earnings Catalyst

Exela Technologies Inc. (XELA) shares are trading at lower $0.41 and the avg recommendation for the stock is Moderate Buy. To add more color...

Kellogg Company (NYSE:K) Finding Zero Support

Kellogg Company (K) shares are trading at lower $65.70 and the avg recommendation for the stock is Moderate Buy, while the current analyst price...

GoodRx Holdings Inc. (NASDAQ:GDRX) on the Path to Ruin

GoodRx Holdings Inc. (GDRX) shares are trading at lower $49.60. To add more color to this target, the company’s high over the last year...

The Unprecedented Rise of Livongo Health Inc. (NASDAQ:LVGO)

Livongo Health Inc. (LVGO) shares are trading at lower $136.67 and the avg recommendation for the stock is Moderate Buy, while the current analyst...

Omnicom Group Inc. (OMC) shares are trading at lower $52.79 and the avg recommendation for the stock is Hold, while the current analyst price target stands at $57.92.

To add more color to this target, the company’s high over the last year is $82.73 and the low is $46.37. Over the last 52 weeks, OMC is down -30.10% while the S&P 500 is up 16.45%. 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 $201.7 million. Omnicom Group Inc. also saw revenues increase to $2.8 billion. In addition, OMC has free cash flow of -$895.8 million as of 06-2020. The company’s EBITDA came in at $118.3 million which compares well with its peers.

OMC booked profit margins of 6.70%, its Return on Equity (ROE) is 36.90%, and its Return on Assets is 3.90%. 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 7.68 and outstanding shares of 214.90M.

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 1.99 million and more growth is possible in the weeks ahead. Traders will also note the company’s earnings per share came in at 4.29. Omnicom Group Inc. OMC also noted assets of $22.64 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 11.49B and a float of 213.07M. 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

Red Rock Resorts Inc. (NASDAQ:RRR) Recent Earnings Shows Major Concern

Red Rock Resorts Inc. (RRR) shares are trading at lower $18.75 and the avg recommendation for the stock is Moderate Buy, while the current...

The Unprecedented Rise of Kaixin Auto Holdings (NASDAQ:KXIN)

Kaixin Auto Holdings (KXIN) shares are trading at higher $4.73. To add more color to this target, the company’s high over the last year...

Sanchez Midstream Partners LP (AMEX:SNMP) Finding Strong Support

Sanchez Midstream Partners LP (SNMP) shares are trading at higher $0.83 and the avg recommendation for the stock is Moderate Buy. To add more...

Renewed Optimism is Surrounding Callaway Golf Company (NYSE:ELY)

Callaway Golf Company (ELY) shares are trading at lower $19.28 and the avg recommendation for the stock is Strong Buy, while the current analyst...

RealNetworks Inc. (NASDAQ:RNWK) is Waving the Bull Flag

RealNetworks Inc. (RNWK) shares are trading at higher $1.80. To add more color to this target, the company’s high over the last year is...