Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.
Trade-Ideas LLC identified
) as a "water-logged and getting wetter" (weak stocks crossing below support with today's range greater than 200%) 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 $41.3 million.
- OHI has traded 903,221 shares today.
- OHI traded in a range 213.8% of the normal price range with a price range of $1.53.
- OHI traded below its daily resistance level (quality: 8 days, meaning that the stock is crossing a resistance level set by the last 8 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).
Stocks matching the 'Water-Logged and Getting Wetter' criteria are worthwhile stocks to watch for a variety of factors including historical back testing and volatility. Trade-Ideas targets these opportunities because the stock is exhibiting an unusual behavior while displaying negative price action. In this case, the stock crossed an important inflection point; namely, "support" while at the same time the range of the stock's movement in price is twice its normal size. This large range foreshadows a possible continuation as the stock moves lower.
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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 5.2%. OHI has a PE ratio of 23.9. Currently there are 2 analysts that rate Omega Healthcare Investors a buy, 2 analysts rate it a sell, and 1 rates it a hold.
The average volume for Omega Healthcare Investors has been 1.3 million shares per day over the past 30 days. Omega Healthcare Investors has a market cap of $5.1 billion and is part of the financial sector and real estate industry. The stock has a beta of 0.78 and a short float of 11.8% with 12.00 days to cover. Shares are up 35.2% year-to-date as of the close of trading on Tuesday.
rates Omega Healthcare Investors as a
. The company's strengths can be seen in multiple areas, such as its robust revenue growth, notable return on equity, expanding profit margins, good cash flow from operations and solid stock price performance. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.
Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 13.7%. Since the same quarter one year prior, revenues rose by 26.5%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Real Estate Investment Trusts (REITs) industry and the overall market, OMEGA HEALTHCARE INVS INC's return on equity exceeds that of both the industry average and the S&P 500.
- The gross profit margin for OMEGA HEALTHCARE INVS INC is currently very high, coming in at 70.58%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 47.22% significantly outperformed against the industry average.
- Net operating cash flow has increased to $92.84 million or 17.93% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 6.60%.
- Powered by its strong earnings growth of 50.00% and other important driving factors, this stock has surged by 30.26% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, OHI should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- You can view the full Omega Healthcare Investors Ratings Report.