Omnicom Group Inc. (OMC): Today's Featured Media Laggard

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

Omnicom Group ( OMC) pushed the Media industry lower today making it today's featured Media laggard. The industry as a whole closed the day up 0.8%. By the end of trading, Omnicom Group fell 86 cents (-1.7%) to $49.87 on heavy volume. Throughout the day, 3.5 million shares of Omnicom Group exchanged hands as compared to its average daily volume of 1.4 million shares. The stock ranged in price between $49.70-$50.85 after having opened the day at $50.52 as compared to the previous trading day's close of $50.73. Other companies within the Media industry that declined today were: Noah Education Holdings ( NED), down 8.2%, LodgeNet Interactive Corporation ( LNET), down 7.3%, Gray Television ( GTN.A), down 4.3%, and RLJ Entertainment ( RLJE), down 4.2%.
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Omnicom Group Inc., together with its subsidiaries, provides advertising, marketing, and corporate communications services in the Americas, Europe, the Middle East, Africa, Asia, and Australia. Omnicom Group has a market cap of $13.93 billion and is part of the services sector. The company has a P/E ratio of 15.1, below the average media industry P/E ratio of 15.3 and below the S&P 500 P/E ratio of 17.7. Shares are up 13.8% year to date as of the close of trading on Tuesday. Currently there are six analysts that rate Omnicom Group a buy, no analysts rate it a sell, and 11 rate it a hold.

TheStreet Ratings rates Omnicom Group as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, growth in earnings per share, revenue growth, notable return on equity and good cash flow from operations. We feel these strengths outweigh the fact that the company shows low profit margins.

On the positive front, Envoy Capital Group ( ECGI), up 12.5%, Spanish Broadcasting System ( SBSA), up 12.1%, KIT Digital ( KITD), up 11.3%, and Pandora Media ( P), up 6.9%, were all gainers within the media industry with Time Warner Cable ( TWC) being today's featured media industry leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the media industry could consider PowerShares Dynamic Media ( PBS) while those bearish on the media industry could consider ProShares Ultra Sht Consumer Services ( SCC).

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