Are Investors Undervaluing Omnicom Group (OMC) Right Now?

While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.One company to watch right now is Omnicom Group (OMC). OMC is currently sporting a Zacks Rank #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 8.41 right now. For comparison, its industry sports an average P/E of 10.58. Over the past year, OMC's Forward P/E has been as high as 12.75 and as low as 8.00, with a median of 9.65. Investors should also recognize that OMC has a P/B ratio of 2.88. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. OMC's current P/B looks attractive when compared to its industry's average P/B of 8.46. Over the past year, OMC's P/B has been as high as 4.84 and as low as 2.71, with a median of 3.34.Finally, our model also underscores that OMC has a P/CF ratio of 9.11. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. OMC's current P/CF looks attractive when compared to its industry's average P/CF of 12.23. Within the past 12 months, OMC's P/CF has been as high as 12.32 and as low as 8.13, with a median of 9.45.Value investors will likely look at more than just these metrics, but the above data helps show that Omnicom Group is likely undervalued currently. And when considering the strength of its earnings outlook, OMC sticks out as one of the market's strongest value stocks.Beyond Nvidia: AI's Second Wave Is HereThe AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. Little-known AI firms tackling the world's biggest problems may be more lucrative in the coming months and years.See "2nd Wave" AI stocks now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Omnicom Group Inc. (OMC): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks