Trade-Ideas LLC identified Omega Healthcare Investors ( OHI) as a "barbarian at the gate" (strong stocks crossing above resistance 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 $29.7 million.
  • OHI has traded 572,427 shares today.
  • OHI traded in a range 209.5% of the normal price range with a price range of $1.24.
  • OHI traded above 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 'Barbarian at the Gate' 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 positive price action. In this case, the stock crossed an important inflection point; namely, 'resistance' while at the same time the range of the stock's movement in price is more than twice its normal size. This large range foreshadows a possible continuation as the stock moves higher.

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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 6.8%. 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 2 rate it a hold.

The average volume for Omega Healthcare Investors has been 1.4 million shares per day over the past 30 days. Omega Healthcare Investors has a market cap of $6.3 billion and is part of the financial sector and real estate industry. The stock has a beta of 0.45 and a short float of 4.3% with 15.17 days to cover. Shares are down 3.8% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Omega Healthcare Investors as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, increase in net income and expanding profit margins. 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 7.9%. Since the same quarter one year prior, revenues leaped by 60.4%. 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 net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the Real Estate Investment Trusts (REITs) industry average. The net income increased by 6.4% when compared to the same quarter one year prior, going from $56.99 million to $60.64 million.
  • The gross profit margin for OMEGA HEALTHCARE INVS INC is rather high; currently it is at 66.09%. Despite the high profit margin, it has decreased significantly from the same period last year. Despite the mixed results of the gross profit margin, OHI's net profit margin of 28.79% compares favorably to the industry average.
  • The share price of OMEGA HEALTHCARE INVS INC has not done very well: it is down 15.10% and has underperformed the S&P 500, in part reflecting the company's sharply declining earnings per share when compared to the year-earlier quarter. 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.

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