Omega Healthcare Investors (OHI) Stock Storming The Castle Today
Trade-Ideas LLC identified
(
) as a "storm the castle" (crossing above the 200-day simple moving average on higher than normal relative volume) candidate. In addition to specific proprietary factors, Trade-Ideas identified Omega Healthcare Investors as such a stock due to the following factors:
- OHI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $87.5 million.
- OHI has traded 1.6 million shares today.
- OHI is trading at 1.61 times the normal volume for the stock at this time of day.
- OHI crossed above its 200-day simple moving average.
'Storm the Castle' stocks are worth watching because trading stocks that begin to experience a breakout can lead to potentially massive profits. Once psychological and technical resistance barriers like the 200-day moving average are breached on higher than normal relative volume, the stock is then free to find new buyers and momentum traders who can ultimately push the stock significantly higher. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize on. In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.
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More details on OHI:
Omega Healthcare Investors, Inc. is a real estate investment firm. The firm invests in the real estate markets of United States. It invests in healthcare facilities, primarily in long-term healthcare facilities in order to create its portfolio. Omega Healthcare Investors, Inc. The stock currently has a dividend yield of 7%. OHI has a PE ratio of 26. Currently there are 5 analysts that rate Omega Healthcare Investors a buy, 1 analyst rates it a sell, and 1 rates it a hold.
The average volume for Omega Healthcare Investors has been 1.6 million shares per day over the past 30 days. Omega Healthcare Investors has a market cap of $6.2 billion and is part of the financial sector and real estate industry. The stock has a beta of 0.44 and a short float of 14.2% with 7.89 days to cover. Shares are down 6% year-to-date as of the close of trading on Thursday.
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Analysis:
rates Omega Healthcare Investors as a
. The company's strengths can be seen in multiple areas, such as its robust revenue growth, reasonable valuation levels and increase in net income. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, a generally disappointing performance in the stock itself and feeble growth in the company's earnings per share.
Highlights from the ratings report include:
- OHI's very impressive revenue growth greatly exceeded the industry average of 11.9%. Since the same quarter one year prior, revenues leaped by 59.3%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- The gross profit margin for OMEGA HEALTHCARE INVS INC is rather high; currently it is at 52.03%. Despite the high profit margin, it has decreased significantly from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 26.09% trails the industry average.
- Reflecting the weaknesses we have cited, including the decline in the company's earnings per share, OHI has underperformed the S&P 500 Index, declining 5.95% from its price level of one year ago. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
- Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. When compared to other companies in the Real Estate Investment Trusts (REITs) industry and the overall market, OMEGA HEALTHCARE INVS INC's return on equity is below that of both the industry average and the S&P 500.
- You can view the full Omega Healthcare Investors Ratings Report.
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