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Omega Healthcare Investors (OHI) Dips More Than Broader Markets: What You Should Know

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Omega Healthcare Investors (OHI - Free Report) closed at $39.39 in the latest trading session, marking a -0.68% move from the prior day. This change lagged the S&P 500's 0.22% loss on the day. At the same time, the Dow lost 0.08%, and the tech-heavy Nasdaq lost 0.36%.

Heading into today, shares of the health care real estate investment trust had gained 9.53% over the past month, outpacing the Finance sector's gain of 7.96% and the S&P 500's gain of 8.17% in that time.

OHI will be looking to display strength as it nears its next earnings release, which is expected to be February 11, 2019. In that report, analysts expect OHI to post earnings of $0.77 per share. This would mark a year-over-year decline of 2.53%. Our most recent consensus estimate is calling for quarterly revenue of $223.15 million, up 0.88% from the year-ago period.

Investors might also notice recent changes to analyst estimates for OHI. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for 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, 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. OHI is currently sporting a Zacks Rank of #1 (Strong Buy).

In terms of valuation, OHI is currently trading at a Forward P/E ratio of 12.55. This valuation marks a discount compared to its industry's average Forward P/E of 14.88.

We can also see that OHI currently has a PEG ratio of 6.28. 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. The REIT and Equity Trust - Other industry currently had an average PEG ratio of 2.66 as of yesterday's close.

The REIT and Equity Trust - Other industry is part of the Finance sector. This group has a Zacks Industry Rank of 149, putting it in the bottom 42% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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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