Shares of Omnicom Group Inc (OMC) hit a 52-week high of $76.30 during the trading session on Feb 14. However, the stock closed a notch lower at $75.93, which reflects a solid yearly return of 32.6%. The average trading volume aggregated 1.8 million shares.
Despite its strong price appreciation, this Zacks Rank #3 (Hold) stock still has enough fundamentals that may further drive the stock upward. The company’s business mix is well diversified geographically and benefits largely from growing markets coupled with a long-term earning growth expectation of 7.1 %.
The increasing demand for media services, speedy growth of technologies and massive proliferation of channels are the primary driving factors for Omnicom.
On Feb 11, 2014, Omnicom reported non-GAAP net income of $313.8 million or 1.18 per share for the fourth quarter compared with $307.1 million or $1.13 per share in the year-ago quarter. The adjusted earnings beat the Zacks Consensus Estimate of $1.16 per share.
Omnicom is concentrating on strengthening its business while expanding its client base globally through acquisition of complementary companies. These accretive acquisitions have enabled the company to build up a diversified presence across the world. Additionally, Omnicom’s look-out for more potential acquisitions improve its long-term growth potential.
In addition, the company is expanding its global footprint and is moving into new service areas. It is also building upon its digital and analytical capabilities by investing in agencies and partnering with innovative technology companies in key markets.
Other Stocks to Consider
Other stocks that look promising and are worth a look now include Huron Consulting Group Inc. (HURN), Marin Software Incorporated (MRIN) and Millennial Media Inc. (MM), each having a Zacks Rank #2 (Buy).