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OMCOmnicom Group Inc.Sell6.5·$85.24+3.31%
SellModerate Confidence
Investment thesis

Omnicom Group combines exceptional revenue growth of 69% year-over-year with free cash flow of 1000% relative to net income and strong momentum at an RSI of 60 with MACD bullish, but the quality score of 3.5 falls just below the minimum investable floor and short interest at 11% reflects meaningful skepticism about the growth sustainability.

Thesis pillars

  • Quality Just Below Investment FloorStable
  • Elevated Short Interest SkepticismDeteriorating
  • Industry Leading Revenue GrowthStable
  • +1 more pillar — see the Why tab for full reasoning

Full reasoning →

Open full analysis

Omnicom Group Inc. (OMC) Stock Analysis

Breakout setup

SellGrowthModerate Confidence

Communication Services · Advertising Agencies

Sell if holding. At $85.24, A.R:R 0.4:1 is below the 1.5:1 minimum. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Thin upside margin: 4.2%; Near 52-week high (2.5% away).

Omnicom Group provides marketing, advertising, and communications services globally through networks including BBDO, TBWA, OMD, and brands acquired via its November 2025 merger with IPG; the combined company employs approximately 120,000 people worldwide. Revenue comes from... Read more

$85.24+4.2% A.UpsideScore 6.5/10#4 of 15 Advertising Agencies
QualityF-score6 / 9FCF yield17.54%
IncomeYield3.88%(5y avg 3.49%)Payout837.84%at-risk
Stop $79.27Target $88.81(analyst − 13%)A.R:R 0.4:1
Analyst target$102.08+19.8%12 analysts
$88.81our TP
$85.24price
$102.08mean
$77
$139

Sell if holding. At $85.24, A.R:R 0.4:1 is below the 1.5:1 minimum. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Thin upside margin: 4.2%; Near 52-week high (2.5% away). Chart setup: Golden cross, above all MAs, RSI 55, MACD bullish. Score 6.5/10, moderate confidence.

Passes 7/8 gates (positive momentum, clean insider activity, no SEC red flags, news events none recent, earnings proximity 73d clear, semi cycle peak clear, materials cycle peak clear). Fails on favorable risk/reward ratio. Suitability: moderate.

news + 30-day 8-K events · 5-min refresh

Recent developments

updated 2026-08-09
TrendMatrix Research · upcoming catalyst calendar

Upcoming dated catalysts

Tue, Oct 20, 202673d to earnings· next earnings call

Thesis

Rewards
Attractive valuation
Strong growth profile
Positive insider activity
Risks
Thin upside margin: 4.2%
Near 52-week high (2.5% away)
Leverage penalty (D/E 1.1): -0.5

Key Metrics

P/E (TTM)224.3
P/E (Fwd)7.1
Mkt Cap$24.3B
EV/EBITDA8.8
Profit Mgn1.7%
ROE6.1%
Rev Growth63.4%
Beta0.66
Dividend3.88%
Rating analysts19

Quality Signals

Piotroski F6/9

Options Flow

P/C1.37bearish
IV46%normal

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

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Methodology · Editorial policy & full disclaimer

Rating Breakdown

1 ceiling hit

GatesA.R:R 0.4 < 1.5@spotMomentum 6.7>=5.5Insider activity: OKNo SEC red flagsNEWS EVENTS NONE RECENTEARNINGS PROXIMITY 73d clearSEMI CYCLE PEAK CLEARMATERIALS CYCLE PEAK CLEARBreakoutSuitability: Moderate
RSI
55 · Neutral
20D MA 50D MA 200D MAGOLDEN CROSSSupport $76.45Resistance $87.41

Price Targets

$79
$89
A.Upside+4.2%
A.R:R0.4:1

Position Sizing

ConvictionNone
Suggested %0.5%
Max %1%
RegimeSteady

Risk Alerts

! NEWS_MOD=-1: HOLD_IF_HOLDING → SELL_IF_HOLDING
! asymmetry at 0.4 (below the engine's 1.5 threshold)@spot

Earnings

B
B
M
M
2/4 beats
Next Earnings2026-10-20 (73d)

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. At $85.24, A.R:R 0.4:1 is below the 1.5:1 minimum. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Thin upside margin: 4.2%; Near 52-week high (2.5% away). Chart setup: Golden cross, above all MAs, RSI 55, MACD bullish. Prior stop was $79.27. Score 6.5/10, moderate confidence.

What is the OMC stock price target?

Take-profit target: $88.81 (+4.2% upside). Prior stop was $79.27. Stop-loss: $79.27.

What are the risks of investing in OMC?

Thin upside margin: 4.2%; Near 52-week high (2.5% away); Leverage penalty (D/E 1.1): -0.5.

Is OMC overvalued or undervalued?

Omnicom Group Inc. trades at a P/E of 224.3 (forward 7.1). TrendMatrix value score: 7.6/10. Verdict: Sell.

What do analysts say about OMC?

19 analysts cover OMC with a consensus score of 3.6/5. Average price target: $102.

What does Omnicom Group Inc. do?Omnicom Group provides marketing, advertising, and communications services globally through networks including BBDO,...

Omnicom Group provides marketing, advertising, and communications services globally through networks including BBDO, TBWA, OMD, and brands acquired via its November 2025 merger with IPG; the combined company employs approximately 120,000 people worldwide. Revenue comes from client service fees across media buying, precision marketing, public relations, and healthcare communications.

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