Omnicom stock: buy or sell?

OMC stock price: $78.12 1.32% At close on August 19th, 2019

Updated on:
August 19th, 2019

3

Omnicom raised a nice 1.32% and closed at $78.12.

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

Should I buy Omnicom stock?

Make a decision about when to buy or sell stocks is one of the hardest parts of being a trader or investor. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best moment to buy them. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best.

Only 1 of our buy setups matches with Omnicom stock now:

Buy setupElegible
New all-time highNo
New 52 week highNo
Price crossing up 200d MAYes
100d MA crossing up 200d MANo

Is Omnicom stock a buy?

Everyday, hundreds of stock ratings are published by financial analysts to indicate a particular stock's attractiveness. At Stocks2.com, we detected 3 ratings published for OMC stock in the last 30 days.

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

Shares of Omnicom closed today at $78.12 and raised a nice 1.32%.

Omnicom shares raised 1.32% to $78.12 today. On Friday OMC price bounced up over the SMA of 200 days demonstrating to be a significant support for this stock. On July/16, OMC hit a new all time high, pushing higher than on July tops. Check different trading setups that use ATHs as triggers.

OMC stock chart (daily)

Weekly outlook

Omnicom shares gained 1.32% this week, ending at $78.12. By mid July OMC plunged a chilling -6.18% in just one week.

Not so far away is the last price record Omnicom marked by mid July. Since late December 2018 when SMA20w and SMA40w crossed up, OMC price gained $9.07 per share (13.14%). Since late December 2018 when OMC stock price broke up the SMA40w line, it gained $9.07 (13.14%).

OMC stock chart (weekly)

Omnicom stock price history

Omnicom stock went public on March 17th, 1980 with a price of $0.151. Since then, OMC stock surged a 51,980.00%, with an average of 1,332.80% per year. If you had invested $1,000 in Omnicom stock in 1980, it would worth $519,800.00 today.

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

Omnicom stock historical price chart

OMC stock reached all-time highs on July/16 with a price of $85.05.

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. The accuracy of these stock price predictions is not very high, and you should not blindly believe and make decisions only based on what this ratings or price target predictions say. 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 target for OMC stock is $81.00. In average, analysts' outlook on OMC price target is stable from previous estimations.

Financials and fundamental analysis

Earnings date and Earnings per Share

On February, Omnicom reported its latest financial data, posting a good gain for the Earnings per Share (EPS). Experts expected $1.66 per share, but 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

In 2018, Omnicom annual revenues stayed steady a neutral 0.11% to $15,290.20 M dollars from $15,273.60 marked in 2017. On the other hand, its earnings margin (compared to sales) stepped up to 8.67%, that is $1,326.40 million.

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 posted $4,086.70 million in revenues for 2018-Q4, a 10.03% improvement compared to previous quarter. Reported quarter earnings marked $399.20 million 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 sales to same quarter last year, Omnicom sales marked a lame drop down and decreased 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 buy a stock, it's worth to review 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 understanding, the next table shows ownership data compared to other related companies:

OMCADSEBAYIPGLAMR
Market cap$17.2 B$7.3 B$34.9 B$7.8 B$6.5 B
Total shares220.2 M52.4 M871.5 M387.0 M85.6 M
Float shares215.9 M45.9 M790.0 M384.4 M85.2 M
  - Institutional holdings (%)107.1%97.2%88.0%105.1%97.2%
  - Insider holdings (%)0.9%2.8%5.3%0.7%0.8%
Shares in short selling0.0%0.0%0.0%0.0%0.0%

Omnicom summary

Monday, August 19th, 2019
Open$78.20
Close$78.12
Day range$77.70 - $78.22
Previous close$77.10
Session gain1.32%
Average true range$1.71
50d mov avg$80.57
100d mov avg$79.08
200d mov avg$76.45
Daily patternlt03a
Weekly pattern

Omnicom performance

To better understand Omnicom performance you must becnhmark its gains with other related stocks in same sector or industry. We chose Alliance Data Systems, eBay, Interpublic Group of Companies, Lamar Advertising and MDC Partners as the bechmarking frame for Omnicom stock.
Stock3m6m12m
OMCOmnicom-0.06%5.06%17.16%
ADSAlliance Data Sys...-4.78%-19.30%-41.11%
EBAYeBay8.87%10.25%18.58%
IPGInterpublic Group...-9.78%-12.19%-6.60%
LAMRLamar Advertising-7.03%-0.40%4.75%
MDCAMDC Partners-30.15%-22.79%-52.71%

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 5 companies as Omnicom competitors as they are in the same industry or have similar market objectives.

Latest Omnicom stock news