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OMCOmnicom Group Inc.Sell5.6·$80.86+3.80%
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 SkepticismStable
  • 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

Range Bound setup

SellVALUE-TRAP 2/5ValueGrowthModerate Confidence

Communication Services · Advertising Agencies

Earnings in 1 day (2026-07-28). Expect elevated volatility around the report — consider waiting for post-earnings price action before new entries.

Sell if holding. Engine safety override at $80.86: Quality below floor (3.5 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 5.6/10. Specifically: Below-average business quality; Negative price momentum.

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

$80.86+12.2% A.UpsideScore 5.6/10#8 of 16 Advertising Agencies
QualityF-score4 / 9FCF yield22.32%
IncomeYield4.02%(5y avg 3.49%)Payout41.30%sustainable
Stop $74.72Target $89.39(analyst − 13%)A.R:R 1.2:1
Analyst target$102.75+27.1%12 analysts
$89.39our TP
$80.86price
$102.75mean
$146

Sell if holding. Engine safety override at $80.86: Quality below floor (3.5 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 5.6/10. Specifically: Below-average business quality; Negative price momentum. Chart setup: RSI 49 mid-range, Bollinger mid-band. Score 5.6/10, moderate confidence.

Passes 5/8 gates (clean insider activity, no SEC red flags, news events none recent, semi cycle peak clear, materials cycle peak clear). Fails on weak momentum and favorable risk/reward ratio and earnings proximity 1d<=7d. Suitability: moderate.

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

Recent developments

updated 2026-07-27
TrendMatrix Research · upcoming catalyst calendar

Upcoming dated catalysts

Tue, Jul 28, 20261d to earnings· next earnings call

Thesis

Rewards
No bull case signals
Risks
Quality below floor (3.5 < 4.0)
Value-trap signals (2/5): Margin compression (op margin -3.3%), Material insider selling (21 sells, 0.13% of cap)

Key Metrics

P/E (TTM)
P/E (Fwd)6.5
Mkt Cap$22.7B
EV/EBITDA9.8
Profit Mgn0.3%
ROE2.0%
Rev Growth69.2%
Beta0.66
Dividend4.02%
Rating analysts19

Quality Signals

Piotroski F4/9

Options Flow

P/C0.86neutral
IV46%normal
Max Pain$55-32.0% vs spot

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

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Performance. Past performance is not indicative of future results. Performance figures reflect the published model only and do not reflect any individual subscriber's actual results.

Methodology · Editorial policy & full disclaimer

Rating Breakdown

2 floor-breakers

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

Macd
0.0
Volume
0.5
Obv
1.0
Rsi
5.5
Ma Position
9.0
Volume distribution (falling OBV)Above 200-day MA

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 3.2<4.5A.R:R 1.2 < 1.5@spotEARNINGS PROXIMITY 1d<=7dInsider activity: OKNo SEC red flagsNEWS EVENTS NONE RECENTSEMI CYCLE PEAK CLEARMATERIALS CYCLE PEAK CLEARRange BoundSuitability: Moderate
RSI
49 · Neutral
20D MA 50D MA 200D MAGOLDEN CROSSSupport $71.52Resistance $85.18

Price Targets

$75
$89
A.Upside+12.2%
A.R:R1.2:1

Position Sizing

ConvictionNone
Suggested %0.5%
Max %1%
RegimeSteady

Risk Alerts

! Quality below floor (3.5 < 4.0)
! Value-trap signals (2/5): Margin compression (op margin -3.3%), Material insider selling (21 sells, 0.13% of cap)
! momentum at 3.2 (below the engine's 4.5 threshold)

Earnings

B
B
B
M
3/4 beats
Next Earnings2026-07-28 (1d)

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 $80.86: Quality below floor (3.5 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 5.6/10. Specifically: Below-average business quality; Negative price momentum. Chart setup: RSI 49 mid-range, Bollinger mid-band. Prior stop was $74.72. Score 5.6/10, moderate confidence.

What is the OMC stock price target?

Take-profit target: $89.39 (+12.2% upside). Prior stop was $74.72. Stop-loss: $74.72.

What are the risks of investing in OMC?

Quality below floor (3.5 < 4.0); Value-trap signals (2/5): Margin compression (op margin -3.3%), Material insider selling (21 sells, 0.13% of cap).

Is OMC overvalued or undervalued?

Omnicom Group Inc. trades at a P/E of N/A (forward 6.5). TrendMatrix value score: 7.9/10. Verdict: Sell.

What do analysts say about OMC?

19 analysts cover OMC with a consensus score of 3.6/5. Average price target: $103.

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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