15 Best Advertising Stocks to Buy According to Hedge Funds

Page 13 of 13

1) Omnicom Group Inc. (NYSE:OMC)

Number of Hedge Fund Holders: 26

Omnicom Group Inc. (NYSE:OMC) provides advertising, marketing, and corporate communications services.

Omnicom Group Inc. (NYSE:OMC) announced the formation of the Omnicom Advertising Group (OAG). This was done by consolidating creative agencies under unified leadership to enhance collaboration and service delivery. The company’s management expressed confidence in its growth prospects, mainly in the Flywheel segment. Omnicom Group Inc. (NYSE:OMC) reported significant new business wins, which include Amazon’s media business and Michelin’s global media account. The total comes out to be $5.3 billion in new business for H1 2024.

The company believes that leveraging and connecting the capabilities of Omnicom Media Group and Flywheel will help directly measure online retail sales generated from media campaigns across the full advertising journey from broadcast TV to upper funnel performance, media, and retail media. This development is unique to Omnicom Group Inc. (NYSE:OMC).

According to the company’s management, e-commerce sales worldwide are expected to increase by 50%, reaching ~$7 trillion by 2025. Flywheel’s acquisition significantly broadens Omnicom Group Inc. (NYSE:OMC)’s reach and influence in the rapidly expanding digital commerce and retail media sectors. Macquarie believes that the company’s internal and external organizational strategies continue to contribute to its success. These include the Flywheel acquisition and the integrations of its media and creative agencies.

Analysts at UBS Group raised their price objective on the shares of Omnicom Group Inc. (NYSE:OMC) from $120.00 to $124.00, giving a “Buy” rating on 16th October.

While we acknowledge the potential of OMC as an investment, our conviction lies in the belief that some deeply undervalued AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for a deeply undervalued AI stock that is more promising than OMC but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.

Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and investors. Please subscribe to our daily free newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.

Page 13 of 13