5 Stocks From Companies Generating High Cash Flow

3. Omnicom Group Inc. (NYSE:OMC)

Free Cash Flow Yield: 13.64%

Free Cash Flow (TTM): $5.07 Billion

On June 3, Goldman Sachs initiated coverage of Omnicom Group Inc. (NYSE:OMC) with a Buy rating and a $146 price target. The firm sees a recovery in growth across the advertising agency sector. The analyst noted in a research report that Omnicom is trading at an 18% free cash flow yield while its core business continues to generate organic growth. Goldman Sachs also said its EBIT and free cash flow estimates for the company are above consensus expectations.

Earlier, on May 28, Rothschild & Co Redburn analyst Bianca Dallal re-initiated coverage of Omnicom with a Neutral rating and an $89 price target. The firm believes the proposed acquisition of Interpublic carries significant execution risks. In a research note, the analyst said Omnicom is “bound by its need to integrate, restructure, and reorganize the enlarged business.”

Omnicom Group Inc. (NYSE:OMC) is a marketing and sales company. It operates through global networks, connected capabilities, and specialized agencies that bring together its portfolio of companies to provide marketing, sales, communications, and commerce services to clients around the world.