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Omnicom Group Inc. (OMC) Stock Analysis

SellModerate Confidence

Communication Services · Advertising Agencies

Sell if holding. Engine safety override at $72.13: Quality below floor (3.5 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 5.5/10 and A.R:R 3.2:1 is above the 1.5:1 BUY gate. Specifically: Below-average business quality; Negative price momentum; Below long-term trend.

Omnicom Group is a global marketing and communications holding company that completed its acquisition of IPG in November 2025, creating one of the world's largest advertising groups with ~120,000 employees across BBDO, TBWA, McCann, OMD, PHD, and dozens of other agencies.... Read more

$72.13+20.9% A.UpsideScore 5.5/10#5 of 9 Advertising Agencies
QualityF-score4 / 9FCF yield24.75%
IncomeYield4.45%(5y avg 3.48%)Payout41.30%sustainable
Stop $68.68Target $86.83(analyst − 13%)A.R:R 3.2:1
Analyst target$99.80+38.4%10 analysts
$86.83our TP
$72.13price
$99.80mean
$115

Sell if holding. Engine safety override at $72.13: Quality below floor (3.5 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 5.5/10 and A.R:R 3.2:1 is above the 1.5:1 BUY gate. Specifically: Below-average business quality; Negative price momentum; Below long-term trend. Chart setup: No recognized chart pattern (not a breakout, bounce, continuation, recovery, falling knife, or range) — technicals mixed. Score 5.5/10, moderate confidence.

Passes 7/8 gates (favorable risk/reward ratio, clean insider activity, no SEC red flags, news events none recent, earnings proximity 62d clear, semi cycle peak clear, materials cycle peak clear). Fails on weak momentum. Suitability: moderate.

Recent Developments — Omnicom Group Inc.

Generated 2026-05-20T20:21:21Z.

Thesis

Rewards
No bull case signals
Risks
Quality below floor (3.5 < 4.0)

Key Metrics

P/E (TTM)
P/E (Fwd)5.8
Mkt Cap$20.5B
EV/EBITDA9.1
Profit Mgn0.3%
ROE2.0%
Rev Growth69.2%
Beta0.68
Dividend4.45%
Rating analysts17

Quality Signals

Piotroski F4/9

Options Flow

P/C0.76neutral
IV37%normal
Max Pain$60-16.8% vs spot

Concentration Risks(10-K Item 1A)

  • MEDIUMCustomer100 largest clients54%
    10-K Item 1: 'Our 100 largest clients, which represent many of the major marketers, represented approximately 54% of revenue and were each served, on average, by approximately 55 of our agencies.'
  • MEDIUMGeographicinternational operations47%
    10-K Item 1A: 'In 2025, our international operations represented approximately 47% of our revenue.'

Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results. Full disclaimer

Rating Breakdown

2 floor-breakers

Price action weak — below key moving averages, no momentum carry. Needs a base before trend-continuation setups apply.static

Macd
0.0
Obv
1.0
Volume
1.5
Ma Position
2.2
Rsi
3.5
Volume distribution (falling OBV)Below 200-MA but MA still rising (+1.0%/30d) — pullback in uptrend, not confirmed weakness

Quality below the gate floor. Component breakdown shows what dragged the score down.static

Gross Margin
0.0
Net Margin
0.2
Roe
0.7
Roa
3.0
Current Ratio
3.6
Piotroski F
4.4
Operating Margin
4.8
Moat
4.9
Fcf Quality
10.0
Excellent cash conversion: 1000% FCF/NINo competitive moat
GatesMomentum 1.6<4.5A.R:R 3.2 ≥ 1.5Insider activity: OKNo SEC red flagsNEWS EVENTS NONE RECENTEARNINGS PROXIMITY 62d clearSEMI CYCLE PEAK CLEARMATERIALS CYCLE PEAK CLEARSuitability: Moderate
RSI
36 · Neutral
20D MA 50D MA 200D MAGOLDEN CROSSSupport $70.80Resistance $78.94

Price Targets

$69
$87
A.Upside+20.4%
A.R:R3.2:1

Position Sizing

ConvictionNone
Suggested %0.5%
Max %1%
RegimeSteady

Risk Alerts

! Quality below floor (3.5 < 4.0)
! Momentum score 1.6/10 — below 4.5 minimum

Earnings

B
B
M
M
2/4 beats
Next Earnings2026-07-21 (62d)

Verdict History

reverse chrono — latest first
Loading history...
Verdicts are recorded on every nightly pipeline run. Rows capture transitions (verdict flips, score deltas ≥0.3, entry/TP/SL changes). Rows with a ▶ can be expanded to see the change reason. Aggregate cohort performance is tracked in the recommendation ledger.
Frequently Asked Questions
Is OMC stock a buy right now?

Sell if holding. Engine safety override at $72.13: Quality below floor (3.5 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 5.5/10 and A.R:R 3.2:1 is above the 1.5:1 BUY gate. Specifically: Below-average business quality; Negative price momentum; Below long-term trend. Chart setup: No recognized chart pattern (not a breakout, bounce, continuation, recovery, falling knife, or range) — technicals mixed. Prior stop was $68.68. Score 5.5/10, moderate confidence.

What is the OMC stock price target?

Take-profit target: $86.83 (+20.9% upside). Prior stop was $68.68. Stop-loss: $68.68.

What are the risks of investing in OMC?

Quality below floor (3.5 < 4.0).

Is OMC overvalued or undervalued?

Omnicom Group Inc. trades at a P/E of N/A (forward 5.8). TrendMatrix value score: 8.4/10. Verdict: Sell.

What do analysts say about OMC?

17 analysts cover OMC with a consensus score of 3.6/5. Average price target: $100.

What does Omnicom Group Inc. do?Omnicom Group is a global marketing and communications holding company that completed its acquisition of IPG in...

Omnicom Group is a global marketing and communications holding company that completed its acquisition of IPG in November 2025, creating one of the world's largest advertising groups with ~120,000 employees across BBDO, TBWA, McCann, OMD, PHD, and dozens of other agencies. Revenue is generated from advertising, media buying, PR, healthcare, precision marketing, and other services, with approximately 47% from international markets in 2025.

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