Back to top

Image: Bigstock

Omega Healthcare Investors (OHI) Gains But Lags Market: What You Should Know

Read MoreHide Full Article

Omega Healthcare Investors (OHI - Free Report) closed the most recent trading day at $28.33, moving +0.18% from the previous trading session. This move lagged the S&P 500's daily gain of 1.02%. At the same time, the Dow added 0.74%, and the tech-heavy Nasdaq lost 0.38%.

Coming into today, shares of the health care real estate investment trust had lost 3.32% in the past month. In that same time, the Finance sector lost 1.63%, while the S&P 500 lost 0.91%.

Wall Street will be looking for positivity from Omega Healthcare Investors as it approaches its next earnings report date. In that report, analysts expect Omega Healthcare Investors to post earnings of $0.83 per share. This would mark year-over-year growth of 2.47%. Our most recent consensus estimate is calling for quarterly revenue of $271.05 million, up 2.75% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $3.36 per share and revenue of $1.08 billion, which would represent changes of +4.02% and +20.7%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for Omega Healthcare Investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.49% higher. Omega Healthcare Investors currently has a Zacks Rank of #3 (Hold).

In terms of valuation, Omega Healthcare Investors is currently trading at a Forward P/E ratio of 8.42. This valuation marks a discount compared to its industry's average Forward P/E of 18.28.

Also, we should mention that OHI has a PEG ratio of 5.2. 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. REIT and Equity Trust - Other stocks are, on average, holding a PEG ratio of 2.9 based on yesterday's closing prices.

The REIT and Equity Trust - Other industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 115, which puts it in the top 46% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on

In-Depth Zacks Research for the Tickers Above

Normally $25 each - click below to receive one report FREE:

Omega Healthcare Investors, Inc. (OHI) - free report >>

Published in