Omnicom stock: buy or sell?
May 21st, 2019
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.
|New all-time high||No|
|New 52 week high||No|
|Price crossing up 200d MA||No|
|100d MA crossing up 200d MA||No|
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.
|Date||Analyst / Broker||Previous rating||Current rating|
|2019-2-13||BMO Capital Markets||Outperform||Outperform|
Omnicom stock analysis
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.
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%).
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 $81.00Predicting 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:
|Date||Analyst / Broker||Action||Previous target||Current target||Diff|
|2019-2-14||Macquarie||Set Price Target||n/a||$76.00||-|
|2019-2-13||BMO Capital Markets||Lowers Target||$84.00||$83.00||-1.2%|
Financials and fundamental analysis
Earnings date and Earnings per ShareOmnicom 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.
|Quarter||Reporting date||Estimated EPS||Actual EPS||Surprise|
Annual financial resultsCompared 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%.
|2013||$14,580 M||-||$966 M6.6%||-|
|2014||$15,318 M||5.06%||$1,104 M7.2%||14.29%|
|2015||$15,134 M||-1.20%||$1,094 M7.2%||-0.91%|
|2016||$15,417 M||1.87%||$1,149 M7.5%||5.00%|
|2017||$15,274 M||-0.93%||$1,088 M7.1%||-5.24%|
|2018||$15,290 M||0.11%||$1,326 M8.7%||21.87%|
Quarterly financial resultsOmnicom 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%.
|2017-Q2||$3,790 M||-||$328 M8.7%||-|
|2017-Q3||$3,720 M||-1.85%||$263 M7.1%||-19.75%|
|2017-Q4||$4,177 M||12.27%||$254 M6.1%||-3.38%|
|2018-Q1||$3,630 M||-13.09%||$264 M7.3%||3.81%|
|2018-Q2||$3,860 M||6.34%||$364 M9.4%||37.90%|
|2018-Q3||$3,714 M||-3.76%||$299 M8.0%||-17.93%|
|2018-Q4||$4,087 M||10.03%||$399 M9.8%||33.56%|
|2019-Q1||$3,469 M||-15.12%||$263 M7.6%||-34.07%|
Omnicom ownershipWhen 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:
|Market cap||$17.6 B||$7.5 B||$1.9 B||$31.9 B||$8.6 B|
|Total shares||220.2 M||52.4 M||362.1 M||871.5 M||387.0 M|
|Float shares||218.7 M||47.2 M||329.6 M||823.3 M||384.3 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 selling||0.0%||0.0%||0.0%||0.0%||0.0%|
|Tuesday, May 21st, 2019|
|Day range||$79.31 - $80.33|
|Average true range||$1.39|
|50d mov avg||$77.27|
|100d mov avg||$75.93|
|200d mov avg||$73.33|
Omnicom performancePerformance 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.
|ADSAlliance Data Sys...||-17.46%||-25.98%||-31.99%|
|CCOClear Channel Out...||-8.73%||-2.10%||19.07%|
Omnicom competitorsOne 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.
- Alliance Data Systems (ADS)
- Clear Channel Outdoor (CCO)
- eBay (EBAY)
- Interpublic Group of Companies (IPG)
- Lamar Advertising (LAMR)
- MDC Partners (MDCA)
Latest Omnicom stock news
- InvestorPlace3 Big Stock Charts for Tuesday: Hanesbrands, Omnicom Group and SchlumbergerApril 16, 2019
- Seeking AlphaOmnicom: A Good Dividend-Yielding Stock With Growth PotentialApril 1, 2019
- Seeking AlphaWhy Omnicom Is More Attractive Than WPPSeptember 26, 2018