"In fact, the stock is down more than 20% from its late 2024 highs. While AI-powered tools may hurt pricing power for creative and production services, the core of the agency's business now revolves around omnichannel marketing planning and managing data assets, which we believe will play an increasingly important role in a complex and fragmented ad ecosystem. With the IPG merger closed, we expect Omnicom to outperform other agencies thanks to its trainable data assets that can improve targeting and conversion efficiency."
"At today's prices, the stock is a promising investment for patient investors, trading 33% below our $115 fair value estimate. This undervalued stock is one of Morningstar Chief US Market Strategist Dave Sekera's stock picks from The Morning Filter podcast episode 5 Stocks to Buy in January 2026. After the November 2025 acquisition of IPG, Omnicom is the largest traditional advertising holding company. It provides creative, media planning and buying, and reputation management services to brand owners."
Omnicom's stock fell more than 20% from late 2024 highs amid investor concerns about artificial intelligence. AI-powered tools may reduce pricing power for creative and production services, but the business increasingly centers on omnichannel marketing planning and managing trainable data assets that improve targeting and conversion efficiency. The November 2025 acquisition of IPG made Omnicom the largest traditional advertising holding company, offering creative, media planning and buying, and reputation management services. Digital ad spending rose from 40% of total ad spending in 2016 to 70% in 2024, increasing the value of scale and data analytics. Omnicom holds a narrow moat from intangible assets and extensive campaign data.
Read at www.morningstar.com
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