In the latest trading session, Owens & Minor (OMI) closed at $37.75, marking a -1.87% move from the previous day. This change lagged the S&P 500’s 0.7% gain on the day. Meanwhile, the Dow gained 0.32%, and the Nasdaq, a tech-heavy index, added 1.23%.
Heading into today, shares of the medical supply distributor had gained 46.83% over the past month, outpacing the Medical sector’s loss of 2.6% and the S&P 500’s gain of 0.18% in that time.
Investors will be hoping for strength from OMI as it approaches its next earnings release. In that report, analysts expect OMI to post earnings of $0.95 per share. This would mark year-over-year growth of 2275%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.28 billion, up 7.5% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.29 per share and revenue of $9.44 billion, which would represent changes of +45.58% and +11.29%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for OMI. 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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 38.82% higher. OMI currently has a Zacks Rank of #1 (Strong Buy).
Looking at its valuation, OMI is holding a Forward P/E ratio of 11.69. Its industry sports an average Forward P/E of 29.05, so we one might conclude that OMI is trading at a discount comparatively.
Investors should also note that OMI has a PEG ratio of 0.24 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company’s expected earnings growth rate into account. The Medical – Products industry currently had an average PEG ratio of 2.43 as of yesterday’s close.
The Medical – Products industry is part of the Medical sector. This group has a Zacks Industry Rank of 151, putting it in the bottom 41% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Owens & Minor, Inc. (OMI): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.