Omnicom Group Inc. (OMC): Today's Featured Services 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 Services sector lower today making it today's featured Services laggard. The sector as a whole closed the day up 0.5%. By the end of trading, Omnicom Group fell $0.82 (-1.3%) to $63.11 on average volume. Throughout the day, 1,923,414 shares of Omnicom Group exchanged hands as compared to its average daily volume of 1,706,600 shares. The stock ranged in price between $62.81-$64.21 after having opened the day at $64.12 as compared to the previous trading day's close of $63.93. Other companies within the Services sector that declined today were: Orchard Supply Hardware ( OSH), down 18.4%, UniTek Global Services ( UNTK), down 9.6%, Inuvo ( INUV), down 7.7% and Armco Metals Holdings ( CNAM), down 7.0%.
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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, and the Asia pacific. Omnicom Group has a market cap of $15.8 billion and is part of the media industry. The company has a P/E ratio of 16.7, below the S&P 500 P/E ratio of 17.7. Shares are up 28.0% year to date as of the close of trading on Friday. Currently there are 4 analysts that rate Omnicom Group a buy, no analysts rate it a sell, and 12 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 revenue growth, solid stock price performance, growth in earnings per share, notable return on equity and reasonable valuation levels. We feel these strengths outweigh the fact that the company shows low profit margins.

On the positive front, Liberty Media Corporation ( LMCA), down 14.5%, Coast Distribution System ( CRV), down 14.3%, Acorn International ( ATV), down 12.9% and DLH Holdings ( DLHC), down 11.8% , were all gainers within the services sector with Best Buy ( BBY) being today's featured services sector leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the services sector could consider iShares Dow Jones US Cons Services ( IYC) while those bearish on the services sector could consider ProShares Ultra Short Consumer Sers ( SCC).

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

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