Omega Healthcare Investors Outpaces Major Indices in 2022
September 15, 2022
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Unlike the major stock indices, Omega Healthcare Investors($NYSE:OHI) is up 8.64% in 2022.
However, it is still down -2.74% from the previous year and well below its 2020 highs. Prior to the pandemic, OHI spent considerable time trading above $40 per share. It breached the $40 level in August 2019 and didn’t fall back into the $30s until the pandemic crash in March 2020.
Price History
On Wednesday, shares of Omega Healthcare Investors opened at $31.80 and closed at $30.30, a drop of 5.2% from its prior closing price of $32.00. The stock underperformed the major indices, which were all up on the day. Omega is a healthcare real estate investment trust that owns and leases skilled nursing and assisted living facilities. The stock has been under pressure in recent months as the pandemic has hurt the demand for these types of facilities.
VI Analysis
At its core, a company’s fundamentals reflect its long term potential. Based on our VI Risk Rating, OHI is a low risk investment in terms of financial and business aspects.
However, there are some potential risks to be aware of in both the business and financial areas. For example, in the business risk area, OHI is reliant on the US healthcare system, which is currently in a state of flux. The potential repeal of the Affordable Care Act could have a negative impact on OHI’s business. In the financial risk area, OHI has a high debt-to-equity ratio, which could make it difficult to finance future growth. Overall, though, OHI is a low risk investment with a strong fundamentals. For more information on OHI’s risks and opportunities, be sure to check out our website.
Summary
The company’s stock price has outperformed major indices in 2022, despite a slight dip the same day. Omega Healthcare Investors has a strong balance sheet with plenty of liquidity to weather any potential storm. The company’s stock price may be volatile in the short-term, but over the long-term, Omega Healthcare Investors is a sound investment.
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