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OMCOmnicom Group Inc.Sell6.0·$77.77
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 Floor↑Improving
  • Elevated Short Interest Skepticism↓Deteriorating
  • Industry Leading Revenue Growth↓Deteriorating
  • +1 more pillar — see the Why tab for full reasoning

Pillars as of Jul 3, 2026, based on the 10-K filed Feb 20, 2026

Full reasoning →

Open full analysis

Omnicom Group Inc. (OMC) Stock Analysis

Range Bound setup

SellGrowthModerate Confidence

Communication Services · Advertising Agencies

Sell if holding. Momentum 4.5/10 is below the 5.0 floor at $77.77 — engine's falling-knife protection flags exit rather than catching a breakdown. Specifics: V7 low-quality RISK_OFF penalty: -0.5 (Q=4.5); Sector modifier (Communication Services): -0.8.

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

$77.77+13.2% A.UpsideScore 6.0/10#5 of 13 Advertising Agencies
QualityF-score6 / 9FCF yield20.73%
IncomeYield4.06%(5y avg 3.47%)Payout323.23%at-risk
Stop $72.77Analyst target $88.02(−13% haircut)A.R:R 2.0:1
Analyst consensus$101.17+30.1%12 analysts
$88.02Analyst target
$77.77price
$101.17mean
$130

Sell if holding. Momentum 4.5/10 is below the 5.0 floor at $77.77 — engine's falling-knife protection flags exit rather than catching a breakdown. Specifics: V7 low-quality RISK_OFF penalty: -0.5 (Q=4.5); Sector modifier (Communication Services): -0.8. Chart setup: RSI 54 mid-range, Bollinger mid-band. Score 6.0/10, moderate confidence.

Passes 7/8 gates (favorable risk/reward ratio, clean insider activity, no SEC red flags, news events none recent, earnings proximity 111d clear, semi cycle peak clear, materials cycle peak clear). Fails on weak momentum. Suitability: moderate.

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

Recent developments

updated 2026-10-29
TrendMatrix Research · upcoming catalyst calendar

Upcoming dated catalysts

Wed, Feb 17, 2027111d to earnings· next earnings call

Thesis

Rewards
Attractive valuation
Strong growth profile
Risks
V7 low-quality RISK_OFF penalty: -0.5 (Q=4.5)
Sector modifier (Communication Services): -0.8
Leverage penalty (D/E 1.1): -0.5

Key Metrics

P/E (TTM)78.6
P/E (Fwd)6.9
Mkt Cap$22.2B
EV/EBITDA7.1
Profit Mgn2.8%
ROE9.9%
Rev Growth59.1%
Beta0.70
Dividend4.06%
Rating analysts19

Quality Signals

Piotroski F6/9

Options Flow

P/C0.76neutral
IV40%normal
Max Pain$40-48.6% vs spot

Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results. How we score · Editorial policy

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About TrendMatrix. TrendMatrix is a publisher of general securities research and market commentary. We publish on a regular schedule. All content is the same for every subscriber in a tier — we do not provide personalized investment advice and we do not take into account any individual subscriber's financial situation, investment objectives, risk tolerance, tax situation, or holdings.

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Conflicts and positions. People who build TrendMatrix, or entities they control, may hold positions, long or short, in securities it covers, and may trade them at any time. Positions are not disclosed individually. Verdicts are generated by an automated model applied by the same rules to every covered stock, and are not adjusted for any position held by the people who build TrendMatrix. We do not accept payment from issuers for coverage.

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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

1 ceiling hit

GatesMomentum 4.5<4.5A.R:R 2.0 ≥ 1.5Insider activity: OKNo SEC red flagsNEWS EVENTS NONE RECENTEARNINGS PROXIMITY 111d clearSEMI CYCLE PEAK CLEARMATERIALS CYCLE PEAK CLEARRange BoundSuitability: Moderate
RSI
54 · Neutral
↓ 20D MA↓ 50D MA↑ 200D MAGOLDEN CROSSSupport $73.66Resistance $86.25

Price Targets

$73
$88
A.Upside+13.2%
A.R:R2.0:1

Position Sizing

ConvictionNone
Suggested %0%
Max %0%
RegimeRisk-Off

Risk Alerts

! momentum at 4.5 (below the engine's 4.5 threshold)

Earnings

B
B
M
M
2/4 beats
Next Earnings2027-02-17 (111d)

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. Momentum 4.5/10 is below the 5.0 floor at $77.77 — engine's falling-knife protection flags exit rather than catching a breakdown. Specifics: V7 low-quality RISK_OFF penalty: -0.5 (Q=4.5); Sector modifier (Communication Services): -0.8. Chart setup: RSI 54 mid-range, Bollinger mid-band. Prior stop was $72.77. Score 6.0/10, moderate confidence.

What is the OMC stock price target?

Analyst target: $88.02 (+13.2% upside). Prior stop was $72.77. Stop-loss: $72.77.

What are the risks of investing in OMC?

V7 low-quality RISK_OFF penalty: -0.5 (Q=4.5); Sector modifier (Communication Services): -0.8; Leverage penalty (D/E 1.1): -0.5.

Is OMC overvalued or undervalued?

Omnicom Group Inc. trades at a P/E of 78.6 (forward 6.9). TrendMatrix value score: 7.2/10. Verdict: Sell.

What do analysts say about OMC?

19 analysts cover OMC with a consensus score of 3.6/5. Average price target: $101.

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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