Omnicom stock: buy or sell?

OMC stock price: $80.07 0.97% At close on May 21st, 2019

Updated on:
May 21st, 2019

4

Shares of Omnicom raised a tiny 0.97% and closed at $80.07.

Omnicom Group Inc., together with its subsidiaries, provides advertising, marketing, and corporate communications services.

Should I buy Omnicom stock?

You can't be a successful trader if you don't follow a methodolgy or system that assist you in choosing companies and the correct market timing. Having a trading strategy helps to make decisions easier, quicker and with less hesitations. There are thousands of trading strategies for you to choose, but at Stocks2.com we prefer those that are simple but successful.

Currently, Omnicom stock doesn't match any of these trading strategies, so our recommendation is not to buy.

Buy setupElegible
New all-time highNo
New 52 week highNo
Price crossing up 200d MANo
100d MA crossing up 200d MANo
This is not a selling recommendation at all, just it's not the best moment to buy if you follow any of these trading strategies.

Is Omnicom stock a buy?

Banks and financial institutions post stock ratings everyday. At Stocks2.com, we detected 3 ratings published for OMC stock in the last month.

Is OMC a good stock to buy?
DateAnalyst / BrokerPrevious ratingCurrent rating
2019-4-17BarclaysUnderweightEqual Weight
2019-2-14Macquarien/aHold
2019-2-13BMO Capital MarketsOutperformOutperform

Omnicom stock analysis

Daily outlook

Omnicom closed today at $80.07 and raised a tiny 0.97%.

Shares of Omnicom ended today at $80.07 and raised a tiny 0.97%. Since last January when SMA100d and SMA200d crossed up, OMC price gained $7.47 per share (10.29%). Since price and SMA100d lines crossed up on April, OMC climbed $6.11 (8.26%). On Apr/18, OMC hit new all time highs, pushing higher previous ATH of $84.11 recorded on April/17. New ATHs are usual entry points for many trading setups as there aren't higher resistences.

OMC stock chart (daily)

Weekly outlook

After sliding for 4 weeks, this week Omnicom appreciated a tiny 0.70%, closing at $80.07. By mid April OMC rocketed an outstanding 7.13% in just one week. This week broke a streak of 4 declining weeks.

Not so far away is the last all-time high Omnicom marked by mid April. Price pattern shows an uptrend with two rising tops and bottoms, and now trading upwards to the $84.35 resistance. Since late December 2018 when SMA20w and SMA40w crossed up, OMC price gained $10.45 per share (15.01%). Since late December 2018 when OMC stock price broke up the SMA40w line, it gained $10.45 (15.01%).

OMC stock chart (weekly)

Omnicom stock price history

Omnicom IPO was on March 17th, 1980 at $0.15 per share1. Since then, OMC stock grew a 53,280.00%, with an average of 1,366.20% per year. If you had invested $1,000 in Omnicom stock in 1980, it would worth $532,800.00 today.

1: Adjusted price after possible price splits or reverse-splits.

Omnicom stock historical price chart

OMC stock reached all-time highs on April 18th with a price of $84.35.

Omnicom stock price target is $81.00

Predicting the price evolution of a stock or any financial instrument in a reliable and repeatable way is probably impossible. However, banks and other financial institutions analysts, with the help of lots of data and algorithms do their best to predict the stock prices movement. You should not follow the analysts' OMC stock price predictions in the hope that they will be met as they may be wrong and not met. For the last month we found 3 price predictions for Omnicom stock:
OMC stock price predictions
DateAnalyst / BrokerActionPrevious targetCurrent targetDiff
2019-4-17BarclaysUpgrades$76.00$84.0010.5%
2019-2-14MacquarieSet Price Targetn/a$76.00-
2019-2-13BMO Capital MarketsLowers Target$84.00$83.00-1.2%
(in average)$80.00$81.001.0%
Moving in a range from $84.00 and $76.00, the price forecast for Omnicom stock is $81.00. In average, analysts' outlook on OMC price forecast is stable from previous estimations.

Financials and fundamental analysis

Earnings date and Earnings per Share

Omnicom reported nice results for 2018-Q4 on February. Omnicom inched Earnings per Share (EPS) by 6.60%, beating analysts consensus of $1.66. Omnicom posted $1.77.
OMC earnings date and EPS evolution
QuarterReporting dateEstimated EPSActual EPSSurprise
2017-Q2-n/a1.4n/a
2017-Q32017-10-171.11.132.7%
2017-Q42018-02-151.541.550.6%
2018-Q12018-04-171.051.148.6%
2018-Q22018-07-171.541.63.9%
2018-Q32018-10-161.211.242.5%
2018-Q42019-02-121.661.776.6%
2019-Q1-n/an/an/a
2019-Q2-n/an/an/a
2019-Q3-n/an/an/a

Annual financial results

Compared to 2017, last anual turnover report draw a neutral movement of 0.11% to $15,290.20 million USD. When comparing 2018 vs 2017, slightly better, profit margin (that is, the net income divided by revenues) raised a 1.55% to 8.67%.

OMC annual Sales and Income evolution
YearSalesYoYIncome/(margin)YoY
2013$14,580 M-$966 M6.6%-
2014$15,318 M5.06%$1,104 M7.2%14.29%
2015$15,134 M-1.20%$1,094 M7.2%-0.91%
2016$15,417 M1.87%$1,149 M7.5%5.00%
2017$15,274 M-0.93%$1,088 M7.1%-5.24%
2018$15,290 M0.11%$1,326 M8.7%21.87%

Quarterly financial results

Omnicom reported $4,086.70 million in revenues for 2018-Q4, a 10.03% up compared to previous quarter. Reported quarter earnings marked $399.20 M with a profit margin of 9.77%. Profit margin gained a 1.72% compared to previous quarter when profit margin was 8.05%. When comparing revenues to same quarter last year, Omnicom sales marked a bad correction and declined a -2.15%.
OMC quarterly Sales and Income evolution
QuarterSales1QoQ2Income1/(margin)QoQ2
2017-Q2$3,790 M-$328 M8.7%-
2017-Q3$3,720 M-1.85%$263 M7.1%-19.75%
2017-Q4$4,177 M12.27%$254 M6.1%-3.38%
2018-Q1$3,630 M-13.09%$264 M7.3%3.81%
2018-Q2$3,860 M6.34%$364 M9.4%37.90%
2018-Q3$3,714 M-3.76%$299 M8.0%-17.93%
2018-Q4$4,087 M10.03%$399 M9.8%33.56%
2019-Q1$3,469 M-15.12%$263 M7.6%-34.07%

Omnicom ownership

When you are planning to invest in shares of a stock, it's worth to overview its ownership structure.

Management staff in all public traded companies that hold equity is required to report every transaction to the SEC. For Omnicom, 0.91% of all outstanding shares are owned by its staff.

Bearish positions for OMC stock account 0.00%, no big difference from last month.

For a better context understanding, the following table shows ownership data compared to other related stocks:

OMCADSCCOEBAYIPG
Market cap$17.6 B$7.5 B$1.9 B$31.9 B$8.6 B
Total shares220.2 M52.4 M362.1 M871.5 M387.0 M
Float shares218.7 M47.2 M329.6 M823.3 M384.3 M
  - Institutional holdings (%)107.1%97.2%62.6%88.0%105.1%
  - Insider holdings (%)0.9%2.8%0.2%5.3%0.7%
Shares in short selling0.0%0.0%0.0%0.0%0.0%

Omnicom summary

Tuesday, May 21st, 2019
Open$79.69
Close$80.07
Day range$79.31 - $80.33
Previous close$79.30
Session gain0.97%
Average true range$1.39
50d mov avg$77.27
100d mov avg$75.93
200d mov avg$73.33
Daily pattern
Weekly pattern lb02a

Omnicom performance

Performance as an absolute value is never valid if it's not benchmarked against competitors or related stocks in the industry. For Omnicom, the comparison is made against Alliance Data Systems, Clear Channel Outdoor, eBay, Interpublic Group of Companies, Lamar Advertising and MDC Partners.
Stock3m6m12m
OMCOmnicom6.80%8.76%15.08%
ADSAlliance Data Sys...-17.46%-25.98%-31.99%
CCOClear Channel Out...-8.73%-2.10%19.07%
EBAYeBay-2.12%29.05%-3.28%
IPGInterpublic Group...-5.49%-0.22%0.18%
LAMRLamar Advertising6.51%13.94%25.12%
MDCAMDC Partners-2.99%43.17%-26.14%

Omnicom competitors

One check before investing in any stock is to have a look a list of its competitors, in this case for Omnicom. We selected 6 companies as Omnicom competitors as they are in the same industry or have similar market objectives.

Latest Omnicom stock news