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Strength Seen in Owens & Minor (OMI): Can Its 36.2% Jump Turn into More Strength?
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Owens & Minor (OMI - Free Report) shares soared 36.2% in the last trading session to close at $44.12. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 11.9% loss over the past four weeks.
The stock saw strong price increase on optimism surrounding the announcement made by the company at 2021 Investor Day that highlights long-term strategy to drive exceptional growth. The company projects adjusted earnings per share of more than $6.00 for 2026, nearly double the earnings guidance for 2022. The company expects revenues of more than $12 billion by 2026, indicating a CAGR of 6% from the 2021 estimate. Further, the company has provided 2022 guidance that is nearly six times higher than 2019 adjusted earnings. This bullish long-term growth outlook instills investor confidence in the stock.
Price and Consensus
This medical supply distributor is expected to post quarterly earnings of $0.84 per share in its upcoming report, which represents a year-over-year change of +320%. Revenues are expected to be $2.34 billion, up 29.2% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For Owens & Minor, the consensus EPS estimate for the quarter has been revised 1.2% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on OMI going forward to see if this recent jump can turn into more strength down the road.
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Strength Seen in Owens & Minor (OMI): Can Its 36.2% Jump Turn into More Strength?
Owens & Minor (OMI - Free Report) shares soared 36.2% in the last trading session to close at $44.12. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 11.9% loss over the past four weeks.
The stock saw strong price increase on optimism surrounding the announcement made by the company at 2021 Investor Day that highlights long-term strategy to drive exceptional growth. The company projects adjusted earnings per share of more than $6.00 for 2026, nearly double the earnings guidance for 2022. The company expects revenues of more than $12 billion by 2026, indicating a CAGR of 6% from the 2021 estimate. Further, the company has provided 2022 guidance that is nearly six times higher than 2019 adjusted earnings. This bullish long-term growth outlook instills investor confidence in the stock.
Price and Consensus
This medical supply distributor is expected to post quarterly earnings of $0.84 per share in its upcoming report, which represents a year-over-year change of +320%. Revenues are expected to be $2.34 billion, up 29.2% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For Owens & Minor, the consensus EPS estimate for the quarter has been revised 1.2% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on OMI going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank 2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>