We recently compiled a list of the 10 Best Marketing Stocks to Buy Right Now. In this article, we are going to take a look at where Omnicom Group Inc. (NYSE:OMC) stands against the other marketing stocks.
According to estimates on Statista, advertising spending across the globe should clock a growth rate of 5.4%, reaching $1.4 trillion in 2029. 80% of the total ad spend will come from digital sources in 2029 with programmatic advertising capturing 85% of the total advertising market. TV and Video Advertising will have a third of the share in 2025 and almost 40% of ad spending will take place in the US. Players like Google and Meta are expected to shape the advertising market by offering new landscapes in this sector.
Advertising ETFs have generated returns of 3.04%, 2.65% and 21.66% for 1-month, 3-month and 1-year tenors. While big tech players pose a threat, there is immense potential to tap a constantly growing advertising pie that would benefit traditional players.
READ ALSO 7 Best Stocks to Buy For Long-Term and 8 Cheap Jim Cramer Stocks to Invest In
Our Methodology
For this article we picked 10 marketing stocks trending on latest news. With each stock we have mentioned the number of hedge fund investors. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
A social media specialist crafting new ideas for healthcare marketing campaigns on a laptop.
Omnicom Group Inc. (NYSE:OMC)
Number of Hedge Fund Investors: 26
Omnicom Group Inc. (NYSE:OMC) is another stock offering a decent forward yield of 3.2% along with an attractive valuation of 12x its trailing 12-month EPS. While the markets have been speculative on its new drive to acquire Interpublic, the fundamentals remain robust with earnings expected to increase by 7% this year. It has a diversified portfolio across advertising, brand consultation and digital marketing with clients like Apple, Chanel, Disney and Volkswagen.
The Interpublic deal would make OMC more competent in dealing with big tech giants that have been disrupting the advertising world. In an industry where AI tools have enabled faster and cheaper ad creation, OMC will benefit from this consolidation by obtaining better pricing power. It will also provide cross-selling opportunities to Interpublic’s clients like Johnson & Johnson, Levi Strauss, and Mattel.
Overall OMC ranks 2nd on our list of the best marketing stocks to buy now. While we acknowledge the potential of OMC as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an 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: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap.
Disclosure: None. This article is originally published at Insider Monkey.
