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Owens & Minor (OMI) Flat As Market Gains: What You Should Know

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In the latest trading session, Owens & Minor (OMI - Free Report) closed at $42.06, marking no change from the previous day. This change lagged the S&P 500's daily gain of 0.75%.

Heading into today, shares of the medical supply distributor had lost 1.17% over the past month, lagging the Medical sector's gain of 5.21% and the S&P 500's gain of 2.91% in that time.

OMI will be looking to display strength as it nears its next earnings release. In that report, analysts expect OMI to post earnings of $0.89 per share. This would mark year-over-year growth of 345%. Meanwhile, our latest consensus estimate is calling for revenue of $2.42 billion, up 34.08% from the prior-year quarter.

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.

Any recent changes to analyst estimates for OMI should also be noted by 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.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. OMI is holding a Zacks Rank of #3 (Hold) right now.

Digging into valuation, OMI currently has a Forward P/E ratio of 11.1. Its industry sports an average Forward P/E of 29.91, so we one might conclude that OMI is trading at a discount comparatively.

Meanwhile, OMI's PEG ratio is currently 0.6. 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. OMI's industry had an average PEG ratio of 2.38 as of yesterday's close.

The Medical - Products industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 169, which puts it in the bottom 34% 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.

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