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Is Omnicom Group (OMC) Stock Outpacing Its Business Services Peers This Year?

The Business Services group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Has Omnicom (OMC) been one of those stocks this year? By taking a look at the stock's year-to-date performance in comparison to its Business Services peers, we might be able to answer that question.

Omnicom is a member of the Business Services sector. This group includes 335 individual stocks and currently holds a Zacks Sector Rank of #5. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.

The Zacks Rank emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. Omnicom is currently sporting a Zacks Rank of #1 (Strong Buy).

Over the past three months, the Zacks Consensus Estimate for OMC's full-year earnings has moved 14.4% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.

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Based on the latest available data, OMC has gained about 15.7% so far this year. At the same time, Business Services stocks have gained an average of 4.1%. This shows that Omnicom is outperforming its peers so far this year.

Another stock in the Business Services sector, Paysafe Limited (PSFE), has outperformed the sector so far this year. The stock's year-to-date return is 16.1%.

Over the past three months, Paysafe Limited's consensus EPS estimate for the current year has increased 39.1%. The stock currently has a Zacks Rank #1 (Strong Buy).

Breaking things down more, Omnicom is a member of the Advertising and Marketing industry, which includes 16 individual companies and currently sits at #45 in the Zacks Industry Rank. This group has gained an average of 15.9% so far this year, so OMC is slightly underperforming its industry in this area.

On the other hand, Paysafe Limited belongs to the Financial Transaction Services industry. This 37-stock industry is currently ranked #68. The industry has moved +8.7% year to date.

Omnicom and Paysafe Limited could continue their solid performance, so investors interested in Business Services stocks should continue to pay close attention to these stocks.

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Omnicom Group Inc. (OMC) : Free Stock Analysis Report

Paysafe Limited (PSFE) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research