Trade-Ideas LLC identified Omega Healthcare Investors ( OHI) 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 $44.5 million.
  • OHI has traded 491,077 shares today.
  • OHI traded in a range 222% of the normal price range with a price range of $1.61.
  • OHI traded below its daily resistance level (quality: 64 days, meaning that the stock is crossing a resistance level set by the last 64 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 6.9%. OHI has a PE ratio of 24. Currently there are 3 analysts that rate Omega Healthcare Investors a buy, 1 analyst rates it a sell, and 3 rate 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 $6.2 billion and is part of the financial sector and real estate industry. The stock has a beta of 0.41 and a short float of 4.1% with 4.81 days to cover. Shares are down 3.4% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Omega Healthcare Investors as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, increase in net income, good cash flow from operations and expanding profit margins. We feel its strengths outweigh the fact that the company has had somewhat disappointing return on equity.

Highlights from the ratings report include:
  • OHI's very impressive revenue growth greatly exceeded the industry average of 6.1%. Since the same quarter one year prior, revenues leaped by 54.6%. 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 company, on the basis of net income growth from the same quarter one year ago, has significantly outperformed against the S&P 500 and exceeded that of the Real Estate Investment Trusts (REITs) industry average. The net income increased by 28.7% when compared to the same quarter one year prior, rising from $61.71 million to $79.40 million.
  • Net operating cash flow has increased to $129.71 million or 39.71% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 9.39%.
  • The gross profit margin for OMEGA HEALTHCARE INVS INC is rather high; currently it is at 69.21%. Regardless of OHI's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, OHI's net profit margin of 39.31% significantly outperformed against the industry.
  • OMEGA HEALTHCARE INVS INC's earnings per share declined by 10.4% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, OMEGA HEALTHCARE INVS INC increased its bottom line by earning $1.74 versus $1.46 in the prior year. For the next year, the market is expecting a contraction of 22.1% in earnings ($1.36 versus $1.74).

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