Omega Healthcare Investors (OHI) closed at $40.17 in the latest trading session, marking a +1.29% move from the prior day. This change outpaced the S&P 500's 0.86% gain on the day. Meanwhile, the Dow lost 0.06%, and the Nasdaq, a tech-heavy index, added 1.37%.
Coming into today, shares of the health care real estate investment trust had gained 16.82% in the past month. In that same time, the Finance sector gained 9.7%, while the S&P 500 gained 8.11%.
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, the Zacks Consensus Estimate for revenue is projecting net sales of $223.15 million, up 0.88% from the year-ago period.
It is also important to note the recent changes to analyst estimates for OHI. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 0.98% higher. 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. For comparison, its industry has an average Forward P/E of 14.66, which means OHI is trading at a discount to the group.
Also, we should mention that OHI has a PEG ratio of 6.28. 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 2.71 at yesterday's closing price.
The REIT and Equity Trust - Other industry is part of the Finance sector. This group has a Zacks Industry Rank of 150, putting it in the bottom 42% 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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