Owens & Minor (OMI) Stock Sinks As Market Gains: What You Should Know
Owens & Minor (OMI) closed the most recent trading day at $44.27, moving -1.49% from the previous trading session. This change lagged the S&P 500's 0.51% gain on the day.
Heading into today, shares of the medical supply distributor had gained 41.41% over the past month, outpacing the Medical sector's gain of 2.39% and the S&P 500's gain of 1.75% in that time.
Investors will be hoping for strength from OMI as it approaches its next earnings release. On that day, OMI is projected to report earnings of $0.89 per share, which would represent year-over-year growth of 345%. Meanwhile, our latest consensus estimate is calling for revenue of $2.42 billion, up 34.08% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.79 per share and revenue of $9.61 billion. These totals would mark changes of +67.7% and +13.32%, respectively, from last year.
Any recent changes to analyst estimates for OMI should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for 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.
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 has moved 10.66% lower. OMI is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that OMI has a Forward P/E ratio of 11.86 right now. For comparison, its industry has an average Forward P/E of 27.94, which means OMI is trading at a discount to the group.
Also, we should mention that OMI has a PEG ratio of 0.64. 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 - Products industry currently had an average PEG ratio of 2.26 as of yesterday's close.
The Medical - Products industry is part of the Medical sector. This group has a Zacks Industry Rank of 197, putting it in the bottom 23% 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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