The Good And Bad: Omnicom Group And AppFolio Inc.

The Good And Bad: Omnicom Group And AppFolio Inc.

The Most Attractive/Most Dangerous Model Portfolios underperformed as an equal-weighted long/short portfolio by 0. 9%. Six new stocks make the Most Attractive list this month, and six new stocks fall onto the Most Dangerous list this month. October's Most Attractive and Most Dangerous stocks were made available to members on October 6, 2021. The Most Attractive stocks have high and rising returns on invested capital (ROIC) and low price to economic book value ratios. Most Dangerous stocks have misleading earnings and long growth appreciation periods implied by their market valuations. Omnicom Group is the featured stock from October's Most Attractive Stocks Model Portfolio. I also made Omnicom a Long Idea in May 2020 and reiterated my opinion on the stock in May 2021. Omnicom has grown revenue by 1% compounded annually and net operating profit after-tax (NOPAT) by 2% compounded annually over the last decade. The company's NOPAT margin increased from 9% in 2015 to 11% over the trailing twelve months (TTM), while invested capital turns remained flat at 1. 3 over the same period. Rising margins help drive Omnicom's ROIC from 12% in 2015 to 14% TTM. Over the past five years, Omnicom generated $8. 3 billion (52% of