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Owens & Minor (OMI) Dips More Than Broader Markets: What You Should Know

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In the latest trading session, Owens & Minor (OMI - Free Report) closed at $46.01, marking a -1.65% move from the previous day. This move lagged the S&P 500's daily loss of 0.2%.

Prior to today's trading, shares of the medical supply distributor had gained 48.56% over the past month. This has outpaced the Medical sector's gain of 4.08% and the S&P 500's gain of 2.11% in that time.

OMI will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.89, up 345% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.42 billion, up 34.08% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.79 per share and revenue of $9.61 billion. These totals would mark changes of +67.7% and +13.32%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for OMI. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 10.66% lower. OMI is holding a Zacks Rank of #3 (Hold) right now.

Digging into valuation, OMI currently has a Forward P/E ratio of 12.34. Its industry sports an average Forward P/E of 27.02, so we one might conclude that OMI is trading at a discount comparatively.

We can also see that OMI currently has a PEG ratio of 0.66. 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. OMI's industry had an average PEG ratio of 2.19 as of yesterday's close.

The Medical - Products industry is part of the Medical sector. This group has a Zacks Industry Rank of 193, putting it in the bottom 25% 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.

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


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