Yahoo Finance Are Investors Undervaluing Omnicom Group (OMC) Right Now?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company to watch right now is Omnicom Group (OMC). OMC is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.
Another notable valuation metric for OMC is its P/B ratio of 4.26. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 5.23. Over the past 12 months, OMC's P/B has been as high as 5.32 and as low as 3.79, with a median of 4.31.
Finally, investors will want to recognize that OMC has a P/CF ratio of 10.44. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 11.10. OMC's P/CF has been as high as 12.41 and as low as 8.98, with a median of 10.73, all within the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Omnicom Group is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, OMC feels like a great value stock at the moment.
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Omnicom Group Inc. (OMC) : Free Stock Analysis Report
