Omega Healthcare Investors (OHI) wins but lags the market: what you need to know

IIn the last trading session, Omega Healthcare Investors (OHI) closed at $30.76, marking a +0.52% move from the previous day. That move lagged the S&P 500’s 0.71% daily gain. Elsewhere, the Dow gained 0.27%, while the tech-heavy Nasdaq gained 0.15%.

As of today, shares of the healthcare real estate investment trust had gained 7.52% over the past month. Meanwhile, the financials sector gained 1.76%, while the S&P 500 gained 3.76%.

Omega Healthcare Investors will look to show strength ahead of its next earnings release. The company is expected to post EPS of $0.68, down 20% from the prior year quarter. Our most recent consensus estimate calls for quarterly revenue of $246.28 million, down 10.04% from the prior year period.

For the full year, our Zacks consensus estimates call for earnings of $2.83 per share and revenue of $993.99 million, which would represent swings of -14.5% and -6, 48%, respectively, compared to the previous year.

It is also important to note recent changes to analyst estimates for Omega Healthcare Investors. Recent revisions tend to reflect the latest short-term trading trends. Thus, positive revisions to estimates reflect analysts’ optimism about the company’s business and profitability.

Based on our research, we believe that these estimate revisions are directly related to the team’s close stock movements. Investors can take advantage of this by using the Zacks ranking. This model accounts for these estimation changes and provides a simple and actionable scoring system.

The Zacks ranking system ranges from #1 (strong buy) to #5 (strong sell). It has a remarkable track record of third-party audited success, with No. 1 stocks offering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has fallen 5.13% over the past month. Omega Healthcare Investors currently has a Zacks ranking of #4 (sell).

Investors should also note Omega Healthcare Investors’ current valuation metrics, including its Forward P/E ratio of 10.81. This represents a discount to the average PER of its sector of 15.45.

Additionally, it is worth mentioning that OHI has a PEG ratio of 6.67. The PEG ratio is similar to the widely used P/E ratio, but this measure also takes into account the company’s expected earnings growth rate. REIT and Equity Trust – Other stocks hold an average PEG ratio of 2.79 based on yesterday’s closing prices.

The REITs and Equity Trusts – Other segment is part of the Finance segment. This group has a Zacks industry ranking of 112, which places it in the top 45% of over 250 industries.

The Zacks Industry Ranking assesses the strength of our industry groups by measuring the average Zacks Ranking of individual stocks within the groups. Our research shows that the top 50% of industries outperform the bottom half by a factor of 2 to 1.

Be sure to use to track all of these stock movement metrics, and more, in future trading sessions.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


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