I am recommending purchase of international advertising agency Omnicom (OMC) after last week’s second-quarter results showed that ad markets remain firm . . . and more importantly, growth businesses such as Precision Marketing are doing very well.
Trading at only 10.5X this year’s EPS estimates and paying a dividend of 4%, recession risk is already priced into the stock. I think Omnicom is getting little credit for its initiatives to expand even in a challenging advertising cycle.
Buy OMC under $70 as I target $80.
If you are an Inner Circle Subscriber following the Model Portfolio, take a 5% position in OMC in the Value Sector.