Omnicom Hits 52-Week High - Analyst Blog

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Shares of Omnicom Group Inc ( OMC ) hit a 52-week high of $72.49 during the trading session on Nov 29. However, the stock closed the session at $71.45, which reflects a solid year-to-date return of 41.6%. The average trading volume of the stock aggregated 1,089,880 shares.

Despite its strong price appreciation, this Zacks Rank #3 (Hold) stock still has enough fundamentals that may further drive the stock upward. Investors remain upbeat as the increasing demand for media services, speedy growth of technologies and massive proliferation of channels are likely to drive the company's growth.

Growth Drivers

Focused expansion into large markets, winning new clients and operational excellence are the primary driving factors for Omnicom.

Omnicom is experiencing continuous revenue growth, driven by healthy performance in developed markets like the U.S. and developing markets like Asia and Latin America. The measures undertaken by the company to reduce costs have also helped it to boost earnings. The company is expanding its global footprint and moving into new service areas.

In addition, Omnicom is concentrating on strengthening its business and 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.

The company has a track record of winning new clients and receiving additional deals from the existing ones.

Estimate Revisions

Over the last 30 days, none of the analyst revised their earnings upward or downward, thus keeping the Zacks Consensus Estimate unchanged at $3.86 per share and $4.24 for 2013 and 2014, respectively

Other Stocks to Consider

Omnicom currently has a Zacks Rank #3 (Hold). Other stocks worth considering in the industry include Stantec Inc ( STN ), holding a Zacks Rank #1 (Strong Buy), Publicis Groupe SA ( PUBGY ) and YuMe, Inc . ( YUME ), both holding a Zacks Rank #2 (Buy).



OMNICOM GRP (OMC): Free Stock Analysis Report

PUBLICIS GP-ADR (PUBGY): Get Free Report

STANTEC INC (STN): Free Stock Analysis Report

YUME INC (YUME): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Business , Stocks

Referenced Stocks: OMC , PUBGY , STN , YUME

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