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

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

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 0.1%. By the end of trading, Omnicom Group fell $1.31 (-2.0%) to $63.49 on average volume. Throughout the day, 2,734,931 shares of Omnicom Group exchanged hands as compared to its average daily volume of 2,112,000 shares. The stock ranged in price between $63.33-$64.15 after having opened the day at $63.33 as compared to the previous trading day's close of $64.80. Other companies within the Services sector that declined today were: Body Central ( BODY), down 32.3%, Weight Watchers International ( WTW), down 19.2%, China Yida ( CNYD), down 11.5% and RadioShack ( RSH), down 11.1%.

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 $16.5 billion and is part of the media industry. Shares are up 28.6% year to date as of the close of trading on Thursday. Currently there are 3 analysts that rate Omnicom Group a buy, no analysts rate it a sell, and 13 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, China Metro-Rural Holdings ( CNR), up 25.0%, Mecox Lane ( MCOX), up 23.2%, FreeSeas ( FREE), up 21.0% and Gaiam Inc. Class A ( GAIA), up 20.2% , were all gainers within the services sector with Bed Bath & Beyond ( BBBY) 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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