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

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In the latest trading session, Omega Healthcare Investors (OHI - Free Report) closed at $31.28, marking a +0.48% move from the previous day. This change lagged the S&P 500's 0.92% gain on the day. At the same time, the Dow added 0.51%, and the tech-heavy Nasdaq gained 0.54%.

Prior to today's trading, shares of the health care real estate investment trust had gained 10.82% over the past month. This has outpaced the Finance sector's gain of 3.59% and the S&P 500's loss of 0.85% in that time.

Wall Street will be looking for positivity from Omega Healthcare Investors as it approaches its next earnings report date. This is expected to be February 2, 2022. The company is expected to report EPS of $0.82, up 1.23% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $268.97 million, up 1.96% from the year-ago period.

Investors should also note any recent changes to analyst estimates for Omega Healthcare Investors. Recent revisions tend to reflect the latest near-term business trends. 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. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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 has moved 2.59% lower. Omega Healthcare Investors is currently sporting a Zacks Rank of #4 (Sell).

Valuation is also important, so investors should note that Omega Healthcare Investors has a Forward P/E ratio of 9.66 right now. For comparison, its industry has an average Forward P/E of 15.46, which means Omega Healthcare Investors is trading at a discount to the group.

We can also see that OHI currently has a PEG ratio of 5.96. 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 2.67 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 86, which puts it in the top 34% 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.

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