Back to top

Bull of the Day

Omega Protein is getting some new interest from analysts and they are bulking up their estimated earnings. Today, it’s the this Zacks Rank #2 (Buy) stock is the Bull of the Day.

Earnings Report History

When I look the earnings history, I see the company has not had an easy go of it. They have missed in all but one of the last six quarters. That is not the type of thing you want to see, but a change at the top inspired analysts to raises estimates. It was shortly after that change took place that the company reported a positive earnings surprise and saw its Zacks Rank increase from #3 (Hold) to a #2 (Buy).

Estimates Move Higher

The jolt to the earnings picture is probably just beginning to be understood. The Zacks Consensus Estimate for 2013 moved from $0.56 to $0.74 more or less overnight. The movement was not limited to 2013, so it was not a one-time event. 2014 estimates moved from $0.68 to $0.92. This could be the start of several consecutive earnings estimate increases, which will increase the Zacks Rank for the stock and most likely lead to higher share prices.

Company Description

Omega Protein is a nutritional ingredient company focusing on the production of Omega-3 fish oil and specialty fish meal products. Omega Protein Corporation was founded in 1913 and is based in Houston, Texas.

OME Beats Estimates In Most Recent Quarter

In the most recent quarter the company posted a solid positive earnings surprise. OME reported $0.20 when the Zacks Consensus Estimate was calling for $0.15. That $0.05 beat translates into a 33% positive earnings surprise.

Valuation

With the recent increase in price, the valuation has moved a bit on the stock. We have seen the stock move from significantly undervalued to nearly in-line valuation with the industry average. The stock is currently trading at 14.6x forward earnings, which is just below the 17.7x industry average for forward PE. The other metrics that we would commonly look up show the stock is still trading at a substantial discount to the industry average.

The Chart

This stock has been in fire since the last earnings report. The stock rose more than 29% in the month of March alone. while the stock consolidates between $10 and $11, institutional buyers are now kicking the tires to see if they should take a second look at this small cap.

Brian Bolan is a Stock Strategist for Zacks.com. He is the Editor in charge of the Zacks Home Run Investor service, a Buy and Hold service where he recommends the stocks in the portfolio.

Brian is also the editor of Follow The Money Trader a trading service that tracks institutional money flows and looks for great stock picks from that data.

Follow Brian Bolan on twitter at @BBolan1

Like Brian Bolan on Facebook

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
RPC INC RES 24.91 +8.35%
LITHIA MOTO… LAD 94.59 +4.60%
DELTA AIR L… DAL 39.15 +3.90%
FLAMEL TECH… FLML 14.51 +3.50%
SOUTHWEST A… LUV 28.87 +2.92%