Is Omnicom Group Stock Fairly Valued?

SectorFinancial Markets
CountryMiddle east

Though Omnicom Group stock (NYSE: OMC) is still below its pre-Covid levels, we believe it does not have any major upside from its current level in the near term. Omnicom Group is a leading marketing communications company engaged in brand advertising, customer relationship management, and media planning. OMC trades near $67 currently and is, in fact, still down 18% since the beginning of 2020 (when it was $81). It traded at $79 in February 2020 – just before the coronavirus pandemic hit the world – and is currently 15% below that level, as well.

This is after OMC stock gained over 38% from its March lows of $48 to reach $67 as on 9th February 2021, compared to the S&P 500 which increased a little over 75% during this time. The stock underperformed the market because of customer companies cutting down on marketing spend as the focus has been on survival. The gradual opening up of the economy and more...