Investor Insights

This summary was created by AI, based on 2 opinions in the last 12 months.

Omnicom Group, trading under the symbol OMC, recently faced a decline of 11.2% from its previous high, prompting analysts to recommend covering the position as it has triggered a stop-loss at $80. Despite this setback, the company is making headlines with a $13.2 billion all-stock merger between two major advertising players, which is expected to significantly enhance its market position and drive operational efficiencies. The newly formed entity is projected to capture 48% of advertising revenue, with management anticipating annual cost savings of $750 million. The stock trades at an attractive price-to-earnings ratio of 13, offering a robust return on equity of 33% and a dividend yield of 3.0%. Analysts have set a price target of $116.02, suggesting an upside potential of 28% from current levels, making it a compelling investment opportunity despite the recent turbulence.

Consensus
Bullish
Valuation
Undervalued
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Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

PAST TOP PICK
(A Top Pick Dec 12/24, Down 11.2%)

Our PAST TOP PICK with OMC has triggered its stop at $80.  To remain disciplined we recommend covering the position at this time.  

premium

This is a Panic-proof Portfolio opinion which is available only for Premium members

Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

TOP PICK
Stockchase Research Editor: Michael O'Reilly

Two of the largest advertising companies in the US just paired up under the OMC name in a $13.2 billion all stock deal.  The new entity will represent 48% of ad revenue and OMC management expects $750 million in annual cost savings.  It trades at 13x earnings and supports a ROE of 33%.  We recommend setting a stop-loss at $80, looking to achieve $116 -- upside potential of 28%. Yield 3.0%  

(Analysts’ price target is $116.02)
WEAK BUY
Is up nearly 10% this year. It's one of the two major global ad agencies; the ad business has been crushed. Shares were killed in the first half of 2022, but bounced in July on good reports. OMC does PR, brand consulting and precision marketing in addition to ads. They are diversified and protects them from volatility. Trades at 12x 2023 PE, and pays a 3.5% dividend yield. Tempting, but the ad business will worse if the Fed keeps tightening.
TOP PICK

An oligopoly. There is only a handful of large advertising companies that have the ability and the global scale to deal with Fortune 500 companies, and this is one of them. His favourite thing is that it has a 10% free cash flow yield. They make a lot of money. The concerns that overhang the valuation, that entrance like Google and Facebook will eventually take their business away, are overblown, because 75% of media buyers still rely on advertising agencies to create the content it contains. Dividend yield of 2.7%. (Analysts’ price target is $84.50.)

PAST TOP PICK

(Top Pick Feb 19/16, Up 13.72%) They specialize in advertising. When you look at the complexity of reaching customers, you have to deal with all the online stuff. The growing complexity causes you to have to specialize in this part of the market.

TOP PICK

Largest advertising and communications agency in the US. Essentially has a network of agencies that they work with. They are seeing strong demand. Even in Asia where there has been weakness, they have had double digit growth in revenue. It’s a matter of helping companies solve complexities. Dividend yield of 2.62%.

TOP PICK

It is such a "Steady Eddie" business. The whole advertising space is transforming a lot. She sees a lot of growth trajectories.

PAST TOP PICK
(A Top Pick Aug 27/08. Down 13.9%.) An OK performer. Advertising market has been softer.
PAST TOP PICK
(A Top Pick Aug 27/08. Down 23.9%.) Outperformed the market by a little bit.
TOP PICK
World's largest advertising agency. Continues to increase earnings every year. Use to trade at around 25X and 30X forward earnings but is now down around 12X or 13X forward earnings. Their business continues to be global. The shift towards web based advertising is a positive in that they don't have to hire actors, etc. 1.4% yield.
TOP PICK
Advertising should move up, especially in 2004. Good price.
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Omnicom Group(OMC-N) Rating

Ranking : 4 out of 5

Bullish - Buy Signals / Votes : 1

Neutral - Hold Signals / Votes : 0

Bearish - Sell Signals / Votes : 0

Total Signals / Votes : 1

Stockchase rating for Omnicom Group is calculated according to the stock experts' signals. A high score means experts mostly recommend to buy the stock while a low score means experts mostly recommend to sell the stock.

Omnicom Group(OMC-N) Frequently Asked Questions

What is Omnicom Group stock symbol?

Omnicom Group is a American stock, trading under the symbol OMC-N on the New York Stock Exchange (OMC). It is usually referred to as NYSE:OMC or OMC-N

Is Omnicom Group a buy or a sell?

In the last year, 1 stock analyst published opinions about OMC-N. 1 analyst recommended to BUY the stock. 0 analysts recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for Omnicom Group.

Is Omnicom Group a good investment or a top pick?

Omnicom Group was recommended as a Top Pick by on . Read the latest stock experts ratings for Omnicom Group.

Why is Omnicom Group stock dropping?

Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.

Is Omnicom Group worth watching?

1 stock analyst on Stockchase covered Omnicom Group In the last year. It is a trending stock that is worth watching.

What is Omnicom Group stock price?

On 2025-04-01, Omnicom Group (OMC-N) stock closed at a price of $79.77.