Omega Healthcare Investors (OHI) closed the most recent trading day at $38.23, moving +0.5% from the previous trading session. The stock lagged the S&P 500's daily gain of 0.76%. Elsewhere, the Dow gained 0.67%, while the tech-heavy Nasdaq added 0.71%.
Prior to today's trading, shares of the health care real estate investment trust had gained 6.7% over the past month. This has outpaced the Finance sector's gain of 4.01% and the S&P 500's gain of 0.75% in that time.
OHI will be looking to display strength as it nears its nex t earnings release, which is expected to be February 11, 2019. In tha t report , analysts expect OHI to post earnings of $0.77 per share. This would mark 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. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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 has moved 1.12% higher. OHI is currently sporting a Zacks Rank of #2 (Buy).
Looking at its valuation, OHI is holding a Forward P/E ratio of 12.04. Its industry sports an average Forward P/E of 14, so we one might conclude that OHI is trading at a discount comparatively.
It is also worth noting that OHI currently has a PEG ratio of 6.02. 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 was holding an average PEG ratio of 2.57 at yesterday's closing price.
The REIT and Equity Trust - Other industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 154, which puts it in the bottom 40% 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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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.