Why This 1 Value Stock Could Be a Great Addition to Your Portfolio
It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors.
While you may have an investing style you rely on, finding great stocks is made easier with the Zacks Style Scores. These are complementary indicators that rate stocks based on value, growth, and/or momentum characteristics.
Why Investors Should Pay Attention to This Value Stock
Finding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to highlight the most attractive and discounted stocks.
Omnicom (OMC)
New York based Omnicom is one of the largest advertising, marketing and corporate communications companies in the world. The company’s agencies operate in all the major markets across the globe and provide an extensive range of services. Areas of operation include North America, Latin America, Europe, the Middle East, Australia, China, India, Japan, Korea, Africa, New Zealand, Singapore, and other Asian countries.
OMC boasts a Value Style Score of B and VGM Score of B, and holds a Zacks Rank #1 (Strong Buy) rating. Shares of Omnicom are trading at a forward earnings multiple of 12X, as well as a PEG Ratio of 2.7, a Price/Cash Flow ratio of 10.5X, and a Price/Sales ratio of 1.2X.
Value investors don't just pay attention to a company's valuation ratios; positive earnings play a crucial role, too. Five analysts revised their earnings estimate upwards in the last 60 days for fiscal 2023. The Zacks Consensus Estimate has increased $0.86 to $7.15 per share. OMC has an average earnings surprise of 8%.
OMC should be on investors' short lists because of its impressive earnings and valuation fundamentals, a good Zacks Rank, and strong Value and VGM Style Scores.
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Omnicom Group Inc. (OMC) : Free Stock Analysis Report
