Omega Protein Corp ( OME - Snapshot Report ) is a great way to play the health trend, with the maker of fish oil products posting big gains over the last 12 months. But with a compelling valuation and estimates on the rise, this Zacks #1 rank stock offers a healthy dose of momentum.

Company Description

Omega Protein Corp. processes and sells fish meal and fish oil products worldwide. The company was founded in 1998 and has a market cap of $248 million.

With consumers increasingly focusing on health and health products, Omega's share price has more than double in just the last six months. That trend was also on display in early May when the company reported strong Q1 results that showed big gains from last year.

First-Quarter Results

Revenue for the period was up 75% from last year to $56 million. Although earnings fell short of some very bullish expectations, EPS spiked to 32 cents from just 5 cents last year. In terms of segments, Omega's Meal division was responsible for 70% of revenue, with Fish Oil responsible for 23%.

Financial Profile

The company has used its recent earnings growth to strengthen its balance, with cash and equivalents up $39 million from last year to $45 million against total debt of $34 million.

Estimates

We saw some pretty nice revisions in estimates off the good quarter, with the current year gaining 7 cents to $1.22. The next-year estimate is pegged at $1.33, a solid 9% growth projection.

Valuation

But in spite of the big gains, OME still has value, trading with a forward P/E of 11X, a nice discount to its peer average of 15X.

12-Month Chart

On the chart, shares have seen big gains over the last year, more than doubling in price after hitting a new multi-year high in early April. The MACD below the chart is bullish, with the short-term average recently crossing ahead of the long-term average. Take a look below.

Michael Vodicka is the Momentum Stock Strategist for Zacks.com. He is also the Editor in charge of the Zacks Momentum Trader Service.