Omnicom Group (OMC) Showing Unusual Social Activity Today
Trade-Ideas LLC identified
(
) as an unusual social activity candidate. In addition to specific proprietary factors, Trade-Ideas identified Omnicom Group as such a stock due to the following factors:
- OMC has more that 20x the normal benchmarked social activity for this time of the day compared to its average of 1.77 mentions/day.
- OMC has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $157.0 million.
Identifying stocks with 'Unusual Social Activity' tends to be a valuable process for traders looking to capitalize on the 'talk of the town' stocks that are basking in far more attention from the StockTwits financial community than normal. Good press? Bad press? It ultimately doesn't matter if it's good or bad if you know how to trade around the sentiment. Certain hedge funds use such data for their proprietary algorithms and it is not uncommon to see shared social sentiment play itself out in a stock's price trend.
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More details on OMC:
Omnicom Group Inc. provides advertising, marketing, and corporate communications services. It offers a range of services in advertising, customer relationship management, public relations, and specialty communications areas. The stock currently has a dividend yield of 2.6%. OMC has a PE ratio of 19. Currently there are 2 analysts that rate Omnicom Group a buy, no analysts rate it a sell, and 5 rate it a hold.
The average volume for Omnicom Group has been 1.7 million shares per day over the past 30 days. Omnicom Group has a market cap of $19.8 billion and is part of the services sector and media industry. The stock has a beta of 1.28 and a short float of 7.9% with 9.71 days to cover. Shares are up 11.7% year-to-date as of the close of trading on Tuesday.
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Analysis:
rates Omnicom Group as a
. The company's strengths can be seen in multiple areas, such as its solid stock price performance, growth in earnings per share, increase in net income, revenue growth and notable return on equity. We feel its strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.
Highlights from the ratings report include:
- The stock has not only risen over the past year, it has done so at a faster pace than the S&P 500, reflecting the earnings growth and other positive factors similar to those we have cited here. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- OMNICOM GROUP has improved earnings per share by 8.4% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, OMNICOM GROUP increased its bottom line by earning $4.41 versus $4.25 in the prior year. This year, the market expects an improvement in earnings ($4.76 versus $4.41).
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the Media industry average. The net income increased by 4.4% when compared to the same quarter one year prior, going from $209.10 million to $218.40 million.
- Despite its growing revenue, the company underperformed as compared with the industry average of 4.1%. Since the same quarter one year prior, revenues slightly increased by 0.9%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Media industry and the overall market, OMNICOM GROUP's return on equity significantly exceeds that of both the industry average and the S&P 500.
- You can view the full Omnicom Group Ratings Report.
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