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Omega Healthcare Investors (OHI) Gains But Lags Market: What You Should Know

·3 min read

In the latest trading session, Omega Healthcare Investors (OHI) closed at $28.47, marking a +0.46% move from the previous day. This move lagged the S&P 500's daily gain of 2.57%. Elsewhere, the Dow gained 2%, while the tech-heavy Nasdaq added 0.3%.

Heading into today, shares of the health care real estate investment trust had gained 2.61% over the past month, outpacing the Finance sector's loss of 9.54% and the S&P 500's loss of 7.68% in that time.

Wall Street will be looking for positivity from Omega Healthcare Investors as it approaches its next earnings report date. In that report, analysts expect Omega Healthcare Investors to post earnings of $0.72 per share. This would mark a year-over-year decline of 15.29%. Meanwhile, our latest consensus estimate is calling for revenue of $246.33 million, down 10.02% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $2.99 per share and revenue of $996.52 million, which would represent changes of -9.67% and -6.24%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for Omega Healthcare Investors. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 2.29% lower. Omega Healthcare Investors is currently a Zacks Rank #3 (Hold).

In terms of valuation, Omega Healthcare Investors is currently trading at a Forward P/E ratio of 9.49. Its industry sports an average Forward P/E of 14.95, so we one might conclude that Omega Healthcare Investors is trading at a discount comparatively.

We can also see that OHI currently has a PEG ratio of 5.86. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. REIT and Equity Trust - Other stocks are, on average, holding a PEG ratio of 2.73 based on yesterday's closing prices.

The REIT and Equity Trust - Other industry is part of the Finance sector. This group has a Zacks Industry Rank of 112, putting it in the top 45% of all 250+ industries.

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

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

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