Omnicom Group Inc. OMC has had a strong performance over the past year, with the stock gaining 17%. This outperformed both the industry it belongs to, which had a 6.1% rise, and the Zacks S&P 500 composite, which had a 15.6% rally.
What’s Driving the Stock
Omnicom is benefiting from new business wins and is focused on integrating creativity, digital technology, and data to develop marketing solutions that meet the transformation needs of its clients.
Omnicom Group Inc. Price
The company has consistently delivered better-than-expected earnings in the last four quarters, driven by strong performance globally and in faster-growing areas. Omnicom’s consistent and diverse operations, along with its focus on consumer-centric strategic solutions, ensure long-term profitability.
Omnicom has also been returning value to shareholders through dividends and share repurchases. In 2022, 2021, and 2020, the company paid dividends of $581.1 million, $592.3 million, and $562.7 million respectively. It also repurchased shares worth $611.4 million, $527.3 million, and $222 million in 2022, 2021, and 2020 respectively. These actions instill confidence in investors and have a positive impact on earnings per share.
Zacks Rank and Stocks to Consider
Omnicom currently holds a Zacks Rank #3 (Hold).
Here are some better-ranked stocks from the broader Business Service sector.
Verisk Analytics VRSK has beaten the Zacks Consensus Estimate in three of the past four quarters, with an average beat of 9.9%. The consensus estimate for 2023 revenues indicates a decrease of 8.2% from the previous year. Earnings for 2023 are expected to be 14% higher than the previous year. VRSK currently holds a Zacks Rank #2 (Buy). See the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Automatic Data ADP currently holds a Zacks Rank #2. The company has beaten the Zacks Consensus Estimate in all the past four quarters, with an average beat of 3.1%. The consensus estimate for fiscal 2024 revenues and earnings imply growth rates of 6.3% and 11.1% respectively.
Broadridge BR currently holds a Zacks Rank #2. The company has beaten the Zacks Consensus Estimate in two of the past four quarters, with one miss and one match. The average beat is 0.5%. The Zacks Consensus Estimate for fiscal 2024 revenues and earnings indicates a rise of 7.2% and 8.8% respectively.
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