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Omega Healthcare Investors (OHI) Outpaces Stock Market Gains: What You Should Know

Zacks

Omega Healthcare Investors (OHI) closed the most recent trading day at $36.83, moving +0.99% from the previous trading session. This change outpaced the S&P 500′s 0.45% gain on the day. Elsewhere, the Dow gained 0.51%, while the tech-heavy Nasdaq added 0.42%.

Heading into today, shares of the health care real estate investment trust had gained 0.55% over the past month, outpacing the Finance sector’s loss of 0.84% and the S&P 500′s loss of 1.64% in that time.

Investors will be hoping for strength from OHI as it approaches its next earnings release, which is expected to be February 12, 2019. In that report, analysts expect OHI to post earnings of $0.77 per share. This would mark a year-over-year decline of 2.53%. Meanwhile, our latest consensus estimate is calling for revenue of $223.15 million, up 0.88% from the prior-year quarter.

Investors might also notice recent changes to analyst estimates for OHI. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company’s business outlook.


Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 1.12% higher. OHI is currently a Zacks Rank #2 (Buy).

In terms of valuation, OHI is currently trading at a Forward P/E ratio of 11.54. Its industry sports an average Forward P/E of 13.71, so we one might conclude that OHI is trading at a discount comparatively.

It is also worth noting that OHI currently has a PEG ratio of 5.77. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company’s expected earnings growth rate into account. The REIT and Equity Trust – Other industry currently had an average PEG ratio of 2.53 as of yesterday’s close.

The REIT and Equity Trust – Other industry is part of the Finance sector. This group has a Zacks Industry Rank of 158, putting it in the bottom 39% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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Zacks Investment Research
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