Omega Healthcare Investors (OHI) is Setting Up for a Big Move

Omega Healthcare Investors Inc. (OHI) is a healthcare facility real estate investment trust that invests in the United States real estate markets. OHI’s portfolio focuses on long-term healthcare facilities. The company operates two segments, skilled nursing and senior housing, with skilled nursing contributing the majority of sales…

Omega Healthcare Investors Inc. (OHI) is benefiting from an increased demand for healthcare services for an aging population. As the baby boomer generation keeps getting older, the need for nursing care will skyrocket. The company performed well over the last year, even during the pandemic, maintaining its dividend last year. 

OHI has a current ratio of 3.1, which indicates it has more than enough liquidity to handle short-term debts. Plus, the company has a healthy 25% profit margin. In its most recent quarter, earnings were up 76.9% year over year, and are expected to rise 181% this year.

The stock appears a bit overvalued with a trailing P/E of 37.54, but that figure is well below the industry average. The stock has shown mixed performance over the past few months as shown in the chart below.

Take a look at the 1-year chart of OHI below with added notations…

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