This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Service-Sector Earnings to Watch This Week

Stocks in this article: VZ EBAY MCD GCI URI APOL OMC

NEW YORK ( TheStreet) -- This week has no shortage of market-moving companies reporting earnings. This preview takes a look at companies categorized as being in the service sector that I believe you should watch. OMC Chart OMC data by YCharts

Omnicom Group (OMC)

Background: Omnicom Group, together with its subsidiaries, provides advertising, marketing and corporate communications services in the Americas, Europe, the Middle East, Africa, Asia and Australia. It offers services in advertising, customer relationship management, public relations and specialty communications sectors. The company was founded in 1944 and is based in New York. Omnicom trades an average of 1.4 million shares per day and has a market cap of $14 billion.

52-Week Range: $39.72 to $54.76

Book Value: $12.31

Price-to-Book Ratio: 4.2

Omnicom is expected to report strong third-quarter earnings growth before the market opens on Tuesday. The consensus estimate is for earnings per share of 73 cents, a gain of 1 cent from 72 cents during the corresponding quarter last year. The lowest analyst EPS estimate is 71 cents, and the highest is 76 cents.

Most of the analysts covering the stock -- 14 out of 23 -- rate it a hold, which is the rating I'd give it. Seven rate it a buy, and one rates it a sell. The analysts may have missed a great opportunity as the stock surged 35% higher in the last year. The average analyst target price for Omnicom Group is $54.94.

Although the last year was great, in the near term I believe the downside risk is greater than the upside potential. For longer-term buy-and-hold investors, it doesn't matter, but if you're looking for an exit, sooner may be better than later.

Omnicom is in a relatively strong bull trend. The price is breaking below the 60-day moving average as I write this, resulting in lower expectations from me.

Omnicom pays a decent dividend amount, and it appears safe based on the historical payout rate. Investors are receiving $1.15 in dividends for a yield of 2.22%.

Shares short as a percentage of float is slightly elevated at 3.7% but not yet large enough to make me worry. As long as this number stays at less than 4%, I won't give it much thought. But if it starts to trend higher, I would recommend monitoring the stock for a possible exit. OMC Revenue Quarterly Chart OMC Revenue Quarterly data by YCharts

1 of 7

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,065.78 +12.07 0.07%
S&P 500 2,088.16 -0.61 -0.03%
NASDAQ 4,806.61 -0.2490 -0.01%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs