Despite a slew of activities during the current month, Omnicom Group Inc. (OMC) has failed to improve investor sentiment. The stock is down almost 6% to $64.32 as on Sep 27, 2013 despite a positive development in one of its operating units.
Most recently, Diversified Agency Services (:DAS), a division of Omnicom, announced that one of its operating units, Porter Novelli, has been selected by John Theurer Cancer Center at Hackensack University Medical Center to serve as its agency-of-record (AOR). This news received a tepid response from investors. Post this tie-up, Porter Novelli is expected to raise awareness about the cancer center as being a “world-class destination for the management and treatment of cancer patients.”
New Jersey’s largest hospital -- John Theurer Cancer Center -- has 14 specialized divisions including diagnosis, treatment, management, research, screenings and preventive care. The divisions cover a complete range of cancer care facilitated by a specialized team of experts.
Though the collaboration, Porter Novelli is expected to offer a complete set of communications services to the cancer center such as strategic planning and branding, together with traditional and social media relations to showcase the hospital.
Porter Novelli’s excellent public relations skills will enable it to educate patients, care-givers and health-care providers about the disciplined, personalized and unique approach of the cancer center to deliver exceptional health benefits.
Omnicom, the parent company of Porter Novelli, is an advertising, marketing and corporate communications bellwether. The company has a strong track record of winning new clients and receiving additional deals from the existing ones. The company’s business mix is well-diversified geographically and benefits largely from the growing markets. In addition, the company’s efforts to control expenses and its global reputation are commendable.
Omnicom currently has a Zacks Rank #4 (Sell). Other notable companies in the industry that warrant a look include WPP plc (WPPGY), Huron Consulting Group Inc. (HURN) and Corporate Executive Board Co. (CEB), each carrying a Zacks Rank #2 (Buy).