Omnicare Inc (OCR): Wholesale's Featured Underachiever Of The Day

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

Omnicare ( OCR) pushed the Wholesale industry lower today making it today's featured Wholesale laggard. The industry as a whole closed the day down 0.2%. By the end of trading, Omnicare fell 48 cents (-1.1%) to $42.22 on average volume. Throughout the day, 821,837 shares of Omnicare exchanged hands as compared to its average daily volume of 1.1 million shares. The stock ranged in price between $41.88-$42.74 after having opened the day at $42.48 as compared to the previous trading day's close of $42.70. Other companies within the Wholesale industry that declined today were: Ingram Micro ( IM), down 3.7%, Olympic Steel ( ZEUS), down 3.1%, RTI International Metals ( RTI), down 2.9%, and Edgen Group Inc Class A ( EDG), down 2.4%.
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Omnicare, Inc. operates as a healthcare services company that specializes in the management of pharmaceutical care in the United States and Canada. The company operates in two segments, Long-Term Care Group and Specialty Care Group. Omnicare has a market cap of $4.4 billion and is part of the services sector. The company has a P/E ratio of 24.3, above the S&P 500 P/E ratio of 17.7. Shares are up 18.3% year to date as of the close of trading on Thursday. Currently there are five analysts that rate Omnicare a buy, no analysts rate it a sell, and two rate it a hold.

TheStreet Ratings rates Omnicare as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, compelling growth in net income, largely solid financial position with reasonable debt levels by most measures and good cash flow from operations. We feel these strengths outweigh the fact that the company shows low profit margins.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the wholesale industry could consider iShares Dow Jones US Cons Goods ( IYK) while those bearish on the wholesale industry could consider ProShares Ultra Sht Consumer Goods ( SZK).

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