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Omega Healthcare Investors (OHI) Outpaces Stock Market Gains: What You Should Know

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Omega Healthcare Investors (OHI - Free Report) closed at $38.95 in the latest trading session, marking a +0.96% move from the prior day. This change outpaced the S&P 500's 0.85% gain on the day. Meanwhile, the Dow gained 0.75%, and the Nasdaq, a tech-heavy index, added 1.29%.

Heading into today, shares of the health care real estate investment trust had gained 9.54% over the past month, lagging the Finance sector's gain of 13.17% and the S&P 500's gain of 12.44% in that time.

Wall Street will be looking for positivity from OHI as it approaches its next earnings report date. This is expected to be February 11, 2019. On that day, OHI is projected to report earnings of $0.77 per share, which would represent a year-over-year decline of 2.53%. Meanwhile, our latest consensus estimate is calling for revenue of $223.15 million, up 0.88% from the prior-year quarter.

It is also important to note the recent changes to analyst estimates for OHI. 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 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 1.23% higher. OHI is holding a Zacks Rank of #2 (Buy) right now.

Investors should also note OHI's current valuation metrics, including its Forward P/E ratio of 12.21. Its industry sports an average Forward P/E of 14.18, so we one might conclude that OHI is trading at a discount comparatively.

Investors should also note that OHI has a PEG ratio of 6.1 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The REIT and Equity Trust - Other industry currently had an average PEG ratio of 2.47 as of yesterday's close.

The REIT and Equity Trust - Other industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 97, which puts it in the top 38% 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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