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Owens & Minor (OMI) Dips More Than Broader Markets: What You Should Know

Owens & Minor (OMI) closed the most recent trading day at $33.41, moving -2.62% from the previous trading session. This move lagged the S&P 500's daily loss of 1.04%.

Prior to today's trading, shares of the medical supply distributor had lost 8.73% over the past month. This has lagged the Medical sector's gain of 4.65% and the S&P 500's gain of 3.83% in that time.

The company is expected to report EPS of $0.84, up 320% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $2.34 billion, up 29.19% from the prior-year quarter.

OMI's full-year Zacks Consensus Estimates are calling for earnings of $3.55 per share and revenue of $9.45 billion. These results would represent year-over-year changes of +57.08% and +11.4%, respectively.

Investors might also notice recent changes to analyst estimates for OMI. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 23.51% higher. OMI is currently sporting a Zacks Rank of #1 (Strong Buy).

Digging into valuation, OMI currently has a Forward P/E ratio of 9.66. This represents a discount compared to its industry's average Forward P/E of 29.

It is also worth noting that OMI currently has a PEG ratio of 0.64. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Medical - Products was holding an average PEG ratio of 2.55 at yesterday's closing price.

The Medical - Products industry is part of the Medical sector. This group has a Zacks Industry Rank of 203, putting it in the bottom 21% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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