OPKO Health (OPK) Outpaces Stock Market Gains: What You Should Know
OPKO Health (OPK) closed at $4.30 in the latest trading session, marking a +1.78% move from the prior day. This change outpaced the S&P 500's 0.01% gain on the day. At the same time, the Dow added 0.39%, and the tech-heavy Nasdaq lost 0.36%.
Coming into today, shares of the holding company with investments in pharmaceutical and diagnostics companies had gained 34.82% in the past month. In that same time, the Medical sector lost 0.66%, while the S&P 500 gained 2.55%.
Investors will be hoping for strength from OPK as it approaches its next earnings release, which is expected to be October 29, 2020. On that day, OPK is projected to report earnings of $0.04 per share, which would represent year-over-year growth of 136.36%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $371.87 million, up 62.53% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $0.03 per share and revenue of $1.27 billion, which would represent changes of +107.32% and +41.1%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for OPK. 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. OPK is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that OPK has a Forward P/E ratio of 126.6 right now. For comparison, its industry has an average Forward P/E of 59.03, which means OPK is trading at a premium to the group.
Also, we should mention that OPK has a PEG ratio of 10.55. 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 Medical - Instruments industry currently had an average PEG ratio of 3.94 as of yesterday's close.
The Medical - Instruments industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 168, which puts it in the bottom 34% 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.
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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.