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One of the most valuable functions of Zacks stock screening functionality is to upend the usual order in which individual investors make trading decisions. Quite often, an investor will start with a company or industry that has been in the news and then perform a deeper analysis of the financial data to decide whether to make a purchase.
Going in the other direction by starting with the financials you’d like to see and letting the screening software find candidates that fit your criteria can help you uncover candidates that you otherwise might not have noticed - but that make complete sense once you consider why their financial data and forecasts are already headed in the right direction.
For instance, there’s been a great deal of attention paid over the past year to biotech and pharmaceutical companies that were working on Covid-19 vaccines. Stocks like Johnson and Johnson (JNJ - Free Report) , Moderna (MRNA - Free Report) and Pfizer (PFE - Free Report) were in the news constantly during the entire process from research and trial, through regulatory approval and on to distribution and administration.
Comparatively less attention was paid to the lesser-known players in the healthcare industry, even though they stand to have their results impacted even more than the household names working on vaccines. That’s where screening comes into play. While it may have been easy to miss if you were reading the headlines in the financial news, I became aware of how well things were going for health logistics company Owens and Minor (OMI - Free Report) because of how well it has been screening for my work on the Zacks Black Box algorithmic service.
When you visit a clinic, doctors office or hospital, it’s nearly certain that a significant amount of the equipment and supplies you see are there because of Owens and Minor. The same goes for surgical and diagnostic tools and medical devices that you're unlikely to ever actually see.
During the most challenging year in memory for the health care industry, OMI’s supply capabilities and logistics expertise were understandably in high demand. With the ability to rapidly boost production of N95 respirators, surgical and procedure masks and face shields, Owens and Minor predictably turned in several solid quarters – and saw the share price rise considerably as well.
As case numbers recede and vaccination efforts look increasingly successful, an investor might reasonably conclude that OMI has already seen the best of the situation and that the current share price already includes all of the good news.
A look at the numbers suggests otherwise.
The considerable rally in share price was the direct result of earnings that were rising even faster. OMI went from netting just $0.04/share in the first quarter of 2020 to $1.14/share in Q4. Full year adjusted net income of $2.26/share was a nearly four-fold increase over 2019.
But it’s getting even better.
While announcing those stellar Q4 results, OMI also increased full-year 2021 guidance, explaining, “the company expects adjusted net income for 2021 to be in a range of $3.00 to $3.50 per share which represents growth in the range of 33% to 55% over 2020 adjusted net income per share.”
Thanks to estimates that were quickly and significantly revised, OMI looks like a great value proposition based on a F12 month P/E Ratio of just 11X – less than half the multiple of the S&P 500. It’s true what they say – the numbers don’t lie. Using Zacks screening functionality can help you sort through all the numbers to find the hidden gems – like Owens and Minor.
These Stocks Are Poised to Soar Past the Pandemic:The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking. Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early. See the 5 high-tech stocks now>>
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Bull of the Day: Owens and Minor (OMI)
One of the most valuable functions of Zacks stock screening functionality is to upend the usual order in which individual investors make trading decisions. Quite often, an investor will start with a company or industry that has been in the news and then perform a deeper analysis of the financial data to decide whether to make a purchase.
Going in the other direction by starting with the financials you’d like to see and letting the screening software find candidates that fit your criteria can help you uncover candidates that you otherwise might not have noticed - but that make complete sense once you consider why their financial data and forecasts are already headed in the right direction.
For instance, there’s been a great deal of attention paid over the past year to biotech and pharmaceutical companies that were working on Covid-19 vaccines. Stocks like Johnson and Johnson (JNJ - Free Report) , Moderna (MRNA - Free Report) and Pfizer (PFE - Free Report) were in the news constantly during the entire process from research and trial, through regulatory approval and on to distribution and administration.
Comparatively less attention was paid to the lesser-known players in the healthcare industry, even though they stand to have their results impacted even more than the household names working on vaccines. That’s where screening comes into play. While it may have been easy to miss if you were reading the headlines in the financial news, I became aware of how well things were going for health logistics company Owens and Minor (OMI - Free Report) because of how well it has been screening for my work on the Zacks Black Box algorithmic service.
When you visit a clinic, doctors office or hospital, it’s nearly certain that a significant amount of the equipment and supplies you see are there because of Owens and Minor. The same goes for surgical and diagnostic tools and medical devices that you're unlikely to ever actually see.
During the most challenging year in memory for the health care industry, OMI’s supply capabilities and logistics expertise were understandably in high demand. With the ability to rapidly boost production of N95 respirators, surgical and procedure masks and face shields, Owens and Minor predictably turned in several solid quarters – and saw the share price rise considerably as well.
As case numbers recede and vaccination efforts look increasingly successful, an investor might reasonably conclude that OMI has already seen the best of the situation and that the current share price already includes all of the good news.
A look at the numbers suggests otherwise.
The considerable rally in share price was the direct result of earnings that were rising even faster. OMI went from netting just $0.04/share in the first quarter of 2020 to $1.14/share in Q4. Full year adjusted net income of $2.26/share was a nearly four-fold increase over 2019.
But it’s getting even better.
While announcing those stellar Q4 results, OMI also increased full-year 2021 guidance, explaining, “the company expects adjusted net income for 2021 to be in a range of $3.00 to $3.50 per share which represents growth in the range of 33% to 55% over 2020 adjusted net income per share.”
Thanks to estimates that were quickly and significantly revised, OMI looks like a great value proposition based on a F12 month P/E Ratio of just 11X – less than half the multiple of the S&P 500.
It’s true what they say – the numbers don’t lie. Using Zacks screening functionality can help you sort through all the numbers to find the hidden gems – like Owens and Minor.
These Stocks Are Poised to Soar Past the Pandemic: The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking. Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early. See the 5 high-tech stocks now>>