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Why Omnicom Group (OMC) Stock Is Up Today

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What Happened?

Shares of global advertising giant Omnicom Group (NYSE:OMC) jumped 3.8% in the afternoon session after the company reported third-quarter earnings that surpassed analyst expectations for profit. For the quarter, Omnicom's revenue grew 4% year-on-year to $4.04 billion, meeting Wall Street's forecasts. The key driver for the stock's positive move, however, was its bottom-line performance. The company posted an adjusted profit of $2.24 per share, which was 3.1% higher than analysts' consensus estimates. This profit beat appeared to outweigh a slight miss on organic revenue growth, which came in at 2.6% versus expectations of 2.7%, and a year-on-year decline in operating margin.

The shares closed the day at $81.24, up 3.2% from previous close.

Is now the time to buy Omnicom Group? Access our full analysis report here.

What Is The Market Telling Us

Omnicom Group’s shares are not very volatile and have only had 7 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.

The previous big move we wrote about was 22 days ago when the stock gained 4% on the news that an analyst at Wells Fargo upgraded the company's stock from "equal weight" to "overweight" and increased the price target. The firm boosted its price forecast for Omnicom Group to $91 from a previous target of $78. An upgrade from a major financial institution like Wells Fargo often leads investors to view a company's prospects more favorably. This action suggested the analyst believed the stock would perform better than the broader market in the near future, which prompted buying activity.

Omnicom Group is down 8.1% since the beginning of the year, and at $79.47 per share, it is trading 24.4% below its 52-week high of $105.06 from November 2024. Investors who bought $1,000 worth of Omnicom Group’s shares 5 years ago would now be looking at an investment worth $1,541.

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