Omega Flex, Inc., together with its subsidiaries, manufactures and sells flexible metal hoses and accessories in North America and internationally. It offers flexible gas piping for use in residential and commercial buildings; fittings; containment pining; and corrugated medical tubing for use in hospitals, ambulatory care centers, dental, physician and veterinary clinics, laboratories, and other facilities. The company sells its products under the TracPipe, CounterStrike, AutoSnap, AutoFlare, DoubleTrac, DEF-Trac, and MediTrac brand names. It serves various markets, including construction, manufacturing, transportation, petrochemical, pharmaceutical, and other industries. The company sells its products through independent sales representatives, distributors, fabricating distributors, wholesalers, original equipment manufacturers, and direct sales, as well as through its website. The company was formerly known as Tofle America, Inc. and changed its name to Omega Flex, Inc. in 1996. Omega Flex, Inc. was incorporated in 1975 and is based in Exton, Pennsylvania.

Omega Flex, Inc.

For Immediate Release
Chicago, IL – June 20, 2025 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: NVIDIA Corp. NVDA, Visa Inc. V, Exxon Mobil Corp. XOM, Omega Flex, Inc. OFLX and Weyco Group, Inc. WEYS.
Here are highlights from Wednesday’s Analyst Blog:
Top Analyst Reports for NVIDIA, Visa and Exxon Mobil
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including NVIDIA Corp., Visa Inc. and Exxon Mobil Corp., as well as two micro-cap stocks Omega Flex, Inc. and Weyco Group, Inc.. The Zacks microcap research is unique as our research content on these small and under-the-radar companies is the only research of its type in the country.
These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
You can see all of today's research reports here >>>
Ahead of Wall Street
The daily 'Ahead of Wall Street' article is a must-read for all investors who would like to be ready for that day's trading action. The article comes out before the market opens and attempts to make sense of that morning's economic releases and how they will affect that day's market action. You can read this article for free on our home page and can actually sign up there to get an email notification as this article comes out each morning.
You can read today's AWS here >>> Homebuilding Down, Jobless Claims Up; Fed News Later
Today's Featured Research Reports
NVIDIA's shares have outperformed the Zacks Semiconductor - General industry over the past year (+6% vs. +4.1%). The company is benefiting from the strong growth of artificial intelligence (AI), high-performance and accelerated computing. The growing demand for generative AI and large language models using graphic processing units (GPUs) based on NVIDIA's Hopper and Blackwell architectures is aiding data center revenues.
Continued ramp-up of Ada RTX GPU workstations in the ProViz end market, following the normalization of channel inventory, is acting as a tailwind. Collaborations with over 320 automakers and tier-one suppliers are likely to advance its presence in the autonomous vehicles space.
The Zacks analyst expects NVIDIA's revenues to witness a CAGR of 28.95% through fiscal 2026-2028. However, a limited supply of Blackwell and Ada GPUs could hinder its ability to meet demand. Rising costs associated with the production of more complex AI systems will hurt margins.
(You can read the full research report on NVIDIA here >>>)
Shares of Visa have outperformed the Zacks Financial Transaction Services industry over the past year (+32.6% vs. +26.6%). The company's strong market position is underpinned by consistent volume-driven growth, acquisitions and technological leadership in digital payments. Expansion in cross-border volumes, rising digital transactions, and investments in AI and stablecoin infrastructure enhance its future prospects.
A robust financial position with ample liquidity and shareholder returns further supports long-term growth. Visa shares outperformed the industry over the past year. However, the company faces rising client incentives and expenses, which may weigh slightly on margins.
Regulatory pressures and potential legislative changes pose additional risks to its fee structures. While declining cash volumes align with Visa's digital strategy, regional softness warrants monitoring. Moreover, the stock's premium valuation suggests limited near-term upside.
(You can read the full research report on Visa here >>>)
Exxon Mobil's shares have outperformed the Zacks Oil and Gas - Integrated - International industry over the past year (+9.3% vs. +3.6%). The company's high-value assets in the Permian Basin and Guyana are driving robust production growth, doubling upstream earnings since 2019. The Pioneer acquisition and Guyana ramp-up have enhanced profitability, while a robust structural savings strengthen resilience.
With a lower exposure to debt capital, XOM supports steady cash flows, dividends, buybacks and investments in high-return projects. Exxon Mobil reported better-than-expected Q1 earnings fueled by higher production from Guyana, the Permian and structural cost savings.
Yet, refining profits weakened due to a significant fall in industry refining margins. The refining margin pressure intensifies the reliance on upstream operations, which is vulnerable to fluctuating oil and gas prices. Commodity price volatility challenges profitability, especially as crude prices dipped due to the impact of trade tariffs.
(You can read the full research report on Exxon Mobil here >>>)
Shares of Omega Flex have underperformed the Zacks Steel - Pipe and Tube industry over the past year (-39.9% vs. +21.8%). This microcap company with a market capitalization of $330.79 million is facing ongoing construction market weakness that led to a 7.5% sales decline in Q1, with additional risk from distributor concentration and decarbonization headwinds affecting core gas piping demand. Operating income fell 19.9% YoY, reflecting deleverage. Trading at 12.8X EV/EBITDA, the stock lags sector peers and has dropped 39% over 12 months.
Nevertheless, Omega Flex offers a resilient investment profile backed by a strong balance sheet, market leadership, and high-margin product innovation. The company ended Q1 2025 with $49.2 million in cash and no debt, providing ample flexibility.
Despite macro headwinds, it generated $1.6 million in operating cash flow and maintained dividend consistency. Omega Flex dominates the U.S. flexible metal hose market via its TracPipe and CounterStrike lines. Expansion into safety-critical applications like MediTrac and DoubleTrac diversifies revenues and supports margins.
(You can read the full research report on Omega Flex here >>>)
Weyco's shares have outperformed the Zacks Shoes and Retail Apparel industry over the past year (+10.3% vs. -32.7%). This microcap company with a market capitalization of $286.69 million has a solid balance sheet — with $77.9 million in cash, no debt, and strong cash flow — and supports dividends, buybacks, and strategic investments without external funding.
Florsheim's 7% Q1 growth and traction in "refined casual" styles offset weakness in legacy brands like Nunn Bush and Stacy Adams. Retail gross margins held at 66.6%, underscoring pricing power and digital focus. A special dividend and a 4% dividend hike show a commitment to shareholder returns. Strategic inventory buildup cushions tariff risks and ensures supply continuity.
However, margin pressure from steep tariffs, BOGS weakness, wholesale softness and geographic concentration pose risks. Ongoing supply chain shifts away from China are necessary, but may disrupt operations. Despite these headwinds, shares appear undervalued at 0.74X EV/sales and 5.63X EV/EBITDA, below industry and market medians.
(You can read the full research report on Weyco here >>>)
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Zacks Names #1 Semiconductor Stock
It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.
See This Stock Now for Free >>
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Visa Inc. (V) : Free Stock Analysis Report
Exxon Mobil Corporation (XOM) : Free Stock Analysis Report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
Weyco Group, Inc. (WEYS) : Free Stock Analysis Report
Omega Flex, Inc. (OFLX): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The Zacks Analyst Blog Highlights NVIDIA, Visa, Exxon Mobil, Omega Flex and Weyco Group

Wednesday, June 18, 2025
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including NVIDIA Corp. (NVDA), Visa Inc. (V) and Exxon Mobil Corp. (XOM), as well as two micro-cap stocks Omega Flex, Inc. (OFLX) and Weyco Group, Inc. (WEYS). The Zacks microcap research is unique as our research content on these small and under-the-radar companies is the only research of its type in the country.
These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
You can see all of today’s research reports here >>>
Ahead of Wall Street
The daily 'Ahead of Wall Street' article is a must-read for all investors who would like to be ready for that day's trading action. The article comes out before the market opens and attempts to make sense of that morning's economic releases and how they will affect that day's market action. You can read this article for free on our home page and can actually sign up there to get an email notification as this article comes out each morning.
You can read today's AWS here >>> Homebuilding Down, Jobless Claims Up; Fed News Later
Today's Featured Research Reports
NVIDIA’s shares have outperformed the Zacks Semiconductor - General industry over the past year (+6% vs. +4.1%). The company is benefiting from the strong growth of artificial intelligence (AI), high-performance and accelerated computing. The growing demand for generative AI and large language models using graphic processing units (GPUs) based on NVIDIA’s Hopper and Blackwell architectures is aiding data center revenues.
Continued ramp-up of Ada RTX GPU workstations in the ProViz end market, following the normalization of channel inventory, is acting as a tailwind. Collaborations with over 320 automakers and tier-one suppliers are likely to advance its presence in the autonomous vehicles space.
The Zacks analyst expect NVIDIA’s revenues to witness a CAGR of 28.95% through fiscal 2026-2028. However, a limited supply of Blackwell and Ada GPUs could hinder its ability to meet demand. Rising costs associated with the production of more complex AI systems will hurt margins.
(You can read the full research report on NVIDIA here >>>)
Shares of Visa have outperformed the Zacks Financial Transaction Services industry over the past year (+32.6% vs. +26.6%). The company’s strong market position is underpinned by consistent volume-driven growth, acquisitions and technological leadership in digital payments. Expansion in cross-border volumes, rising digital transactions, and investments in AI and stablecoin infrastructure enhance its future prospects.
A robust financial position with ample liquidity and shareholder returns further supports long-term growth. Visa shares outperformed the industry over the past year. However, the company faces rising client incentives and expenses, which may weigh slightly on margins.
Regulatory pressures and potential legislative changes pose additional risks to its fee structures. While declining cash volumes align with Visa’s digital strategy, regional softness warrants monitoring. Moreover, the stock’s premium valuation suggests limited near-term upside.
(You can read the full research report on Visa here >>>)
Exxon Mobil’s shares have outperformed the Zacks Oil and Gas - Integrated - International industry over the past year (+9.3% vs. +3.6%). The company’s high-value assets in the Permian Basin and Guyana are driving robust production growth, doubling upstream earnings since 2019. The Pioneer acquisition and Guyana ramp-up have enhanced profitability, while a robust structural savings strengthen resilience.
With a lower exposure to debt capital, XOM supports steady cash flows, dividends, buybacks and investments in high-return projects. The Exxon Mobil reported better-than-expected Q1 earnings fueled by higher production from Guyana, the Permian and structural cost savings.
Yet, refining profits weakened due to a significant fall in industry refining margins. The refining margin pressure intensifies the reliance on upstream operations, which is vulnerable to fluctuating oil and gas prices. Commodity price volatility challenges profitability, especially as crude prices dipped due to the impact of trade tariffs.
(You can read the full research report on Exxon Mobil here >>>)
Shares of Omega Flex have underperformed the Zacks Steel - Pipe and Tube industry over the past year (-39.9% vs. +21.8%). This microcap company with a market capitalization of $330.79 million is facing ongoing construction market weakness led to a 7.5% sales decline in Q1, with additional risk from distributor concentration and decarbonization headwinds affecting core gas piping demand. Operating income fell 19.9% YoY, reflecting deleverage. Trading at 12.8X EV/EBITDA, the stock lags sector peers and has dropped 39% over 12 months.
Nevertheless, Omega Flex offers a resilient investment profile backed by a strong balance sheet, market leadership, and high-margin product innovation. The company ended Q1 2025 with $49.2 million in cash and no debt, providing ample flexibility.
Despite macro headwinds, it generated $1.6 million in operating cash flow and maintained dividend consistency. Omega Flex dominates the U.S. flexible metal hose market via its TracPipe and CounterStrike lines. Expansion into safety-critical applications like MediTrac and DoubleTrac diversifies revenues and supports margins.
(You can read the full research report on Omega Flex here >>>)
Weyco’s shares have outperformed the Zacks Shoes and Retail Apparel industry over the past year (+10.3% vs. -32.7%). This microcap company with a market capitalization of $286.69 million has a solid balance sheet — with $77.9 million in cash, no debt, and strong cash flow — and supports dividends, buybacks, and strategic investments without external funding.
Florsheim’s 7% Q1 growth and traction in “refined casual” styles offset weakness in legacy brands like Nunn Bush and Stacy Adams. Retail gross margins held at 66.6%, underscoring pricing power and digital focus. A special dividend and a 4% dividend hike show a commitment to shareholder returns. Strategic inventory buildup cushions tariff risks and ensures supply continuity.
However, margin pressure from steep tariffs, BOGS weakness, wholesale softness and geographic concentration pose risks. Ongoing supply chain shifts away from China are necessary, but may disrupt operations. Despite these headwinds, shares appear undervalued at 0.74X EV/sales and 5.63X EV/EBITDA, below industry and market medians.
(You can read the full research report on Weyco here >>>)
Other noteworthy reports we are featuring today include Wells Fargo & Co. (WFC), McDonald's Corp. (MCD) and Blackstone Inc. (BX).
Mark Vickery
Senior Editor
Note: Sheraz Mian heads the Zacks Equity Research department and is a well-regarded expert of aggregate earnings. He is frequently quoted in the print and electronic media and publishes the weekly Earnings Trends and Earnings Preview reports. If you want an email notification each time Sheraz publishes a new article, please click here>>>
Today's Must Read
NVIDIA (NVDA) Rides on Strong Adoption of GPUs, Partnerships
Visa (V) Rides On Cross Border Volume Growth, Expenses High
ExxonMobil's (XOM) Guyana & Permian Basin Discoveries Aid
Featured Reports
Asset Cap Lift to Aid Wells Fargo (WFC), Revenue Decline Ail
Per the Zacks analyst, with the removal of the asset cap, Wells Fargo can now grow deposits, loans, and fee-based services to boost earnings. Yet, declining revenues are a major concern.
Expansion Efforts Aid McDonald's (MCD), Comps Woes Stay
Per the Zacks analyst, McDonald's is benefiting from menu innovation, value offerings and global expansion strategies. However, dismal comps remain a concern.
Inflows Aid Blackstone's (BX) Asset Growth, High Costs a Woe
Per the Zacks analyst, net inflows, diversified products and revenue mix will likely drive Blackstone's assets under management growth. Higher costs due to investments in franchise might hurt profits.
Strong HVAC Market Aids Trane Technologies (TT), Costs High
Per the Zacks analyst, Trane Technologies' top-line gains from a strong HVAC Market. Innovative customer-centric solutions are fueling the company's growth. Rising costs remain a concern.
Workday (WDAY) Rides on Solid Customer Engagement, AI Focus
Per the Zack analyst, growing demand for Workday's human capital and finance management solutions will likely drive its top line. AI integration across the portfolio is a tailwind.
Reliable Assets, Customer Increase Aid Southwest Gas (SWX)
Per the Zacks analyst, Southwest Gas' investment in infrastructure is making its assets more reliable. Economic improvement and expanding customer base are creating demand and boosting performance.
Editas Bets on In Vivo Gene Editing Amid Strategic Refocus
EDIT shifts focus to in vivo gene editing with bold pipeline bets and cost cuts, but clinical entry delays and past setbacks cloud near-term prospects.
New Upgrades
AptarGroup (ATR) Gains from Healthy Demand and Innovation
Per the Zacks Analyst, AptarGroup will benefit from innovative product rollouts, and increased demand for beauty and personal care markets.
Solid Comps Run to Fuel Urban Outfitters' (URBN) Top Line
Per the Zacks analyst, Urban Outfitters' commitment to improving comps, supported by product expansion and effective marketing, bodes well. Comps in retail segment rose 4.8% during Q1 fiscal 2026.
Animal Health, Performance Products Units Aid Phibro (PAHC)
Per the Zacks analyst, solid momentum in Phibro's Animal Health business is led by the newly integrated MFA portfolio and other products. Performance Products gains on surge in ingredient demand.
New Downgrades
ProPetro (PUMP) Hurt by Reduction in Fleet Count
The Zacks analyst believes that weak oil prices and market uncertainty forced ProPetro Holding to reduce fleet count narrowing its short-term revenue visibility.
High Metal Prices Aid Royal Gold (RGLD) Amid Elevated Costs
Per the Zacks analyst, high gold and silver prices is aiding Royal Gold's performance. However, higher interest costs remain a headwind.
Higher Freight Costs to Weigh on Abercrombie's (ANF) Margins
Per the Zacks analyst, Abercrombie Q1 gross margins reflected higher freight costs and more normalized carryover inventory selling. The persistence of these is expected to hurt margins in fiscal 2025.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in the coming year. While not all picks can be winners, previous recommendations have soared +112%, +171%, +209% and +232%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Visa Inc. (V) : Free Stock Analysis Report
Exxon Mobil Corporation (XOM) : Free Stock Analysis Report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
Weyco Group, Inc. (WEYS) : Free Stock Analysis Report
Omega Flex, Inc. (OFLX): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. In 1978, our founder discovered the power of earnings estimate revisions to enable profitable investment decisions. Today, that discovery is still the heart of the Zacks Rank. A wealth of resources for individual investors is available at www.zacks.com.

Top Analyst Reports for NVIDIA, Visa & Exxon Mobil

Omega Flex (NASDAQ: OFLX), a leading producer of flexible metal hose and piping products, is often considered a reliable long-term investment. Its pipes are used to deliver gas fuels in residential and commercial buildings, as well as liquid fuels for automotive customers, marinas, and back-up generators. It also serves the healthcare and industrial markets.
Omega Flex was founded 50 years ago, went public 20 years ago, and currently holds more than 100 patents. Its revenue and earnings per share (EPS) grew at a compound annual growth rate (CAGR) of 9% and 19%, respectively, from 2011 to 2021.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »
Unfortunately, Omega Flex's revenue and EPS both declined in 2022, 2023, and 2024. As a result, its stock price plummeted nearly 70% over the past three years as the S&P 500 advanced more than 25%. Let's see why Omega Flex's growth stalled out, and if investors should buy, sell, or hold its stock after that steep pullback.
Why did Omega Flex stop growing?
Many older buildings still use black iron or copper pipes to deliver gases. Those metal pipes are rigid, require fittings and threads at each bend, and are prone to break during earthquakes and other natural disasters. Omega Flex addresses those issues with its flexible steel tubing, which can be bent by hand and installed across long, uninterrupted lines through a building.
Omega Flex now leads the corrugated stainless steel tube (CSST) market, which Verified Market Research estimates will grow at a CAGR of 4.8% from 2024 to 2031. But over the past three years, elevated interest rates throttled the growth of the housing market -- and the company's sales and profits tumbled.
Metric
2022
2023
2024
Net sales growth
(3%)
(11%)
(4%)
EPS growth
(10%)
(12%)
(14%)
For Omega Flex to grow, the housing market needs to stabilize. However, new U.S. housing starts in February only came in at 1.5 million on a seasonally adjusted basis -- which represented 11.2% growth from January but a 2.9% decline from a year ago.
The housing market could remain chilly as the threats of higher tariffs and protracted inflation douse hopes for deeper interest rate cuts this year. If interest rates stay elevated, Omega Flex's sales and profits will likely decline for at least another year.
Does Omega Flex look historically cheap yet?
Omega Flex is an under-the-radar stock that isn't covered by any Wall Street analysts yet. The company also doesn't provide any near-term guidance, so investors don't have a clear idea of where it might head over the next few years.
At $41, Omega Flex trades at 23 times its trailing earnings. That's actually its lowest price-to-earnings ratio since 2016. But if you look back further, you'll see that it traded at about 16 times trailing earnings throughout the second half of 2012 -- when the housing market finally bottomed out four years after the crash of 2008.
So if you use 2012 as a reference point, Omega Flex's stock doesn't look like a screaming bargain yet. However, its forward dividend yield of 3.3% might limit its downside potential. It only spent 72% of its free cash flow (FCF) on its dividends over the past 12 months, so it still has plenty of room to raise its payout until its business recovers.
So is it time to buy, sell, or hold this stock?
If you already own Omega Flex's stock, it makes more sense to hold it than to sell it before the housing market bottoms out. But if you don't already own it, it doesn't look cheap enough to be considered a value stock yet. It might be worth nibbling on at these levels since its dividends might limit its downside potential, but investors should brace for more volatility if interest rates stay high and the housing market stays chilly.
Should you invest $1,000 in Omega Flex right now?
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Leo Sun has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Omega Flex Stock: Buy, Sell, or Hold?

Flexible metal hose manufacturers aren't exactly the type of businesses that spring to mind when you think of stocks with market-crushing potential. However, as a leader in this flexible metal hose niche -- primarily corrugated stainless steel tubing (CSST) -- Omega Flex (NASDAQ: OFLX) proves that monstrous returns can come from all varieties of stocks.
From the company's initial public offering (IPO) in 2005 through 2021, Omega Flex produced total returns more than six times higher than those of the S&P 500 index. Even after Omega Flex saw its share price decline 74% in the last few years, mainly due to the cyclicality of its operations and its industry, the company's returns have roughly equaled those of the S&P 500 index since Omega Flex's IPO.
As alarming as this sell-off has been, I can't help but see it as a once-in-a-decade opportunity for investors with the patience to buy and hold for a decade at a time. Here's what makes Omega Flex an attractive investment.
Omega Flex moves hand-in-hand with the U.S. housing market
Omega Flex's CSST systems provide several advantages over traditional black iron piping for fuel gases in residential and commercial construction. Unlike black iron or copper pipe, which needs threads and separate fittings attached for each bend necessary during construction, Omega Flex's flexible tubing can be bent by hand and installed in lengthy, uninterrupted lines throughout a building.
In addition to this simplified installation process, Omega Flex's CSST performs better than rigid piping during earthquakes and lightning strikes, making it more resistant to damage. Thanks to these advantages, CSST now accounts for roughly 50% of fuel gas piping in new and remodeled housing construction in the U.S. -- a niche where Omageflex considers itself a leader.
Continuously iterating upon the proprietary rotary manufacturing process it developed in 1995, the company's production capabilities are as flexible as the CSST it sells, providing its goods on an as-demanded basis.
While this leadership position in a growing niche is promising, the vast majority of Omega Flex's sales correlate to the cyclical housing industry in the United States.
OFLX Revenue (TTM) data by YCharts
With its sales moving hand-in-hand with U.S. housing starts, Omega Flex has struggled mightily over the last couple of years. As U.S. housing starts continued to slow as the market battled rising interest rates, the after-effects of high inflation, and an uncertain consumer in general, Omega Flex's sales dropped in tandem.
However, research from Zillow shows that the U.S. housing market remains 4.5 million homes short, and consumers are pining for more affordable housing. Over the longer term, this should rejuvenate growth in the number of U.S. housing starts, but when this change will occur is uncertain.
Ultimately, though, with the Federal Reserve set to cut interest rates in September, the tide might be starting to turn for Omega Flex over the shorter term. Best yet, for investors, the company can currently be purchased at what looks like a once-in-a-decade valuation.
A once-in-a-decade opportunity
Regardless of when the turnaround in the growth of U.S. housing starts occurs, investors buying Omega Flex can take solace in the fact that they are getting a top-tier compounder at an excellent price. Even with the company currently in the trough of its business cycle, Omega Flex currently holds a return on invested capital (ROIC) of 24%.
Measuring the company's profitability compared to its debt and equity, this resilient ROIC is indicative of a wide moat surrounding Omega Flex's operations. Historically, companies that generate a higher ROIC than their peers have proven to deliver outperforming stock returns, as this article suggests. In addition to this high ROIC, the company has maintained an 18% net income margin despite the challenging macroeconomic environment.
On the valuation side, Omega Flex's price-to-earnings (P/E) ratio of 25 is near 10-year lows, and its 2.8% dividend yield is at all-time highs.
OFLX PE Ratio data by YCharts
Despite these large dividend payments amid the challenging operating environment, the company only uses 69% of its net income to fund its payout. Typically distributing the majority of its earnings to shareholders over recent years -- including a hefty special dividend in 2019 -- management isn't afraid to return cash to shareholders. With insiders owning 25% of the company's shares, management is well incentivized to continue growing these dividends -- maybe even at an accelerated rate once revenue growth returns.
Ultimately, Omega Flex isn't the flashiest investment opportunity out there. However, short- and long-term trends are starting to lean in Omega Flex's favor. With the company's highly profitable (albeit cyclical) operations available at a once-in-a-decade valuation, I believe it makes for a magnificent dividend stock to buy and hold for decades.
Should you invest $1,000 in Omega Flex right now?
Before you buy stock in Omega Flex, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Omega Flex wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $731,449!*
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Josh Kohn-Lindquist has positions in Omega Flex and Zillow Group. The Motley Fool has positions in and recommends Zillow Group. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

A Once-in-a-Decade Opportunity: 1 Magnificent Dividend Stock Down 74% to Buy Now and Hold Forever

As a leader in the wild world of flexible metal hoses and piping, Omega Flex (NASDAQ: OFLX) may not jump out at investors as a stock screaming "multibagger potential." Nevertheless, since its initial public offering in 2005, Omega Flex has proven to be a quiet multibagger, delivering total returns above 800% -- a 13% annualized rate.
Despite this incredible run, no Wall Street analysts actively follow the stock, leaving the $700 million business somewhat unknown.
However, with its share price now down over 45% from its 52-week highs due to the ongoing softness in the United States housing industry, Omega Flex is quickly becoming one of my favorite dividend stocks to buy in 2024.
Omega Flex leads the flexible metal hoses and piping niche
Operating in the highly fragmented flexible metal hose industry, Omega Flex focuses on three market categories for the bulk of its sales:
Residential and commercial construction: TracPipe, CounterStrike, and AutoSnap brands are used for piping fuel gases typically used by appliances.
General industrial: DoubleTrac (double containment) and DEF-Trac (diesel emissions fluid) brands are used at locations like fueling stations and waste treatment plants while also serving various automotive and marina customers.
Medical: MediTrac corrugated medical tubing moves medical gases safely throughout healthcare facilities.
While it is tough to pinpoint a "leader" in a niche category as specific as flexible metal hoses, Omega Flex believes itself to be the top dog (or near) in its residential, commercial, and industrial end markets. Meanwhile, its fledgling (2018 launch) medical unit has seen a rapid uptake -- even being used at temporary hospitals in Central Park during the pandemic.
That's great, you may be thinking, but what makes Omega Flex the better option?
Simply put, the company's 123 patents focus on flexibility and ease of installation and represent a massive upgrade over traditional, rigid piping. Not only is traditional piping more labor-intensive to install -- and far less user-friendly being inflexible -- but it also dramatically underperforms compared to Omega Flex's options in the event of an earthquake or lightning strike.
Despite these promising factors, the company saw sales and earnings per share (EPS) decline by 13% and 15% in the third quarter as the U.S. housing market continued to see fewer new home starts. However, with the U.S. housing market still estimated to be facing a 3 million home deficit, these weak financial figures should be temporary and improve over the long haul.
Steady profits and history of returning it all to shareholders
Making the investment case all the more alluring for Omega Flex is its stellar return on invested capital (ROIC) of 30%. ROIC measures a company's profitability compared to its debt and equity. Stocks with higher ROICs like Omega Flex have proven to be market-beating propositions over the longer term. For context, if Omega Flex were large enough to be in the S&P 500, its ROIC would be the seventh highest of the 73 industrial stocks in the index.
On top of this outsize profitability, management has a strong track record of returning excess profits to shareholders. In fact, it returns virtually all of it.
Through its steadily increasing quarterly payments and occasional special dividends, the company is laser-focused on taking care of its shareholders. With Omega Flex maintaining a 68% insider ownership percentage, management is well incentivized to keep these dividend payments flowing.
A valuation at five-year lows
Trading at 33 times earnings, Omega Flex isn't necessarily cheap compared to the S&P 500's average price-to-earnings (P/E) ratio of 25. However, it is the cheapest the company has traded in over five years and represents a discount relative to its decade-long average of 41.
Adding more excitement to Omega Flex's valuation situation is its 1.8% dividend yield, essentially at all-time highs outside of marks set a few months ago.
This is a promising sign for dividend-focused investors as they can "lock in" this dividend yield (assuming the dividend isn't cut, which, with a 59% payout ratio, it shouldn't be) today and see it steadily inch higher.
Omega Flex may look like a boring leader in its niche that Wall Street analysts can't be bothered to follow, but that's the beauty of this relatively unknown but premium business trading at a fair price. Thanks to the company's steady operations, outsize profits, and consistent dividend payments, Omega Flex looks like a perfect dollar-cost-averaging candidate to buy in increments throughout 2024.
Should you invest $1,000 in Omega Flex right now?
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Josh Kohn-Lindquist has positions in Omega Flex. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

1 Magnificent Dividend Stock Down 23% to Buy in 2024 and Hold Forever

The following are today's upgrades for Validea's Patient Investor model based on the published strategy of Warren Buffett. This strategy seeks out firms with long-term, predictable profitability and low debt that trade at reasonable valuations.
OMEGA FLEX INC (OFLX) is a small-cap growth stock in the Misc. Fabricated Products industry. The rating according to our strategy based on Warren Buffett changed from 72% to 86% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Omega Flex, Inc. is a manufacturer of flexible metal hoses. The Company's flexible metal hose is used in a variety of applications to carry gases and liquids within their particular applications. These applications include carrying fuel gases within residential and commercial buildings; gasoline and diesel gasoline products (both above and below the ground) in a double containment piping to contain any possible leaks, which is used in automotive and marina refueling, and fueling for backup generation; and medical gases in health care facilities. The Company's flexible gas piping products are sold under TracPipe and CounterStrike trademarks. Its products also include MediTrac corrugated medical gas tubing and DoubleTrac double containment piping. It sells its products through distributors, and wholesalers to original equipment manufacturers (OEMs) throughout North America and Europe.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
Detailed Analysis of OMEGA FLEX INC
AVERY DENNISON CORP (AVY) is a large-cap growth stock in the Paper & Paper Products industry. The rating according to our strategy based on Warren Buffett changed from 79% to 93% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Avery Dennison Corporation is a materials science and digital identification solutions company. It provides branding and information labeling solutions, including pressure-sensitive materials, radio-frequency identification (RFID) inlays and tags, and a variety of converted products and solutions. It designs and manufactures a range of labeling and functional materials that enhance branded packaging, carry or display information that connects the physical and the digital, and improve customer's product performance. It serves an array of industries worldwide, including home and personal care, apparel, e-commerce, logistics, food and grocery, pharmaceuticals and automotive. The Company has two segments. Materials Group segment is a solutions provider to the pressure-sensitive label and graphics industries worldwide. Solutions Group segment offers RFID solutions, branding and embellishment solutions, data management and identification solutions, and pricing and productivity solutions.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
Detailed Analysis of AVERY DENNISON CORP
JACK HENRY & ASSOCIATES, INC. (JKHY) is a large-cap growth stock in the Computer Services industry. The rating according to our strategy based on Warren Buffett changed from 65% to 79% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Jack Henry & Associates, Inc. is a financial technology company. The Company's segments include Core, Payments, Complementary, and Corporate and Other. The Core segment provides core information processing platforms to banks and credit unions, which consist of integrated applications required to process deposit, loan, and general ledger transactions, and maintain centralized customer/member information. The Payments segment provides secure payment processing tools and services, including automated teller machine, debit, and credit card processing services; online and mobile bill pay solutions; automated clearinghouse origination and remote deposit capture processing; and risk management products and services. The Complementary segment provides additional software, hosted processing platforms, and services, including call center support, and network security management, consulting, and monitoring, which can be integrated with its core solutions, and many can be used independently.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
Detailed Analysis of JACK HENRY & ASSOCIATES, INC.
About Warren Buffett: Warren Buffett is considered by many to be the greatest investor of all time. As the chairman of Berkshire Hathaway, Buffett has consistently outperformed the S&P 500 for decades, and in the process has become one of the world's richest men. (Forbes puts his net worth at $37 billion.) Despite his fortune, Buffett is known for living a modest lifestyle, by billionaire standards. His primary residence remains the gray stucco Nebraska home he purchased for $31,500 nearly 50 years ago, according to Forbes, and his folksy Midwestern manner and penchant for simple pleasures -- a cherry Coke, a good burger, and a good book are all near the top of the list -- have been well-documented.
About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Validea Warren Buffett Strategy Daily Upgrade Report - 1/3/2024

Looking at the universe of stocks we cover at Dividend Channel, on 12/18/23, Cincinnati Financial Corp. (Symbol: CINF), Omega Flex Inc (Symbol: OFLX), and Amphenol Corp. (Symbol: APH) will all trade ex-dividend for their respective upcoming dividends. Cincinnati Financial Corp. will pay its quarterly dividend of $0.75 on 1/16/24, Omega Flex Inc will pay its quarterly dividend of $0.33 on 1/4/24, and Amphenol Corp. will pay its quarterly dividend of $0.22 on 1/10/24. As a percentage of CINF's recent stock price of $105.98, this dividend works out to approximately 0.71%, so look for shares of Cincinnati Financial Corp. to trade 0.71% lower — all else being equal — when CINF shares open for trading on 12/18/23. Similarly, investors should look for OFLX to open 0.42% lower in price and for APH to open 0.23% lower, all else being equal.
Below are dividend history charts for CINF, OFLX, and APH, showing historical dividends prior to the most recent ones declared.
Cincinnati Financial Corp. (Symbol: CINF):
Omega Flex Inc (Symbol: OFLX):
Amphenol Corp. (Symbol: APH):
In general, dividends are not always predictable, following the ups and downs of company profits over time. Therefore, a good first due diligence step in forming an expectation of annual yield going forward, is looking at the history above, for a sense of stability over time. This can help in judging whether the most recent dividends from these companies are likely to continue. If they do continue, the current estimated yields on annualized basis would be 2.83% for Cincinnati Financial Corp., 1.69% for Omega Flex Inc, and 0.92% for Amphenol Corp..
In Thursday trading, Cincinnati Financial Corp. shares are currently up about 1.3%, Omega Flex Inc shares are off about 0.4%, and Amphenol Corp. shares are up about 0.7% on the day.
Click here to learn which 25 S.A.F.E. dividend stocks should be on your radar screen »
Also see:
MTZ YTD Return
TRU Dividend Growth Rate
Institutional Holders of ABM
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Ex-Dividend Reminder: Cincinnati Financial, Omega Flex and Amphenol

The following are today's upgrades for Validea's Patient Investor model based on the published strategy of Warren Buffett. This strategy seeks out firms with long-term, predictable profitability and low debt that trade at reasonable valuations.
OMEGA FLEX INC (OFLX) is a small-cap growth stock in the Misc. Fabricated Products industry. The rating according to our strategy based on Warren Buffett changed from 72% to 86% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Omega Flex, Inc. is a manufacturer of flexible metal hoses. The Company's flexible metal hose is used in a variety of applications to carry gases and liquids within their particular applications. These applications include carrying fuel gases within residential and commercial buildings; gasoline and diesel gasoline products (both above and below the ground) in a double containment piping to contain any possible leaks, which is used in automotive and marina refueling, and fueling for backup generation; and medical gases in health care facilities. The Company's flexible gas piping products are sold under TracPipe and CounterStrike trademarks. Its products also include MediTrac corrugated medical gas tubing and DoubleTrac double containment piping. It sells its products through distributors, and wholesalers to original equipment manufacturers (OEMs) throughout North America and Europe.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
Detailed Analysis of OMEGA FLEX INC
About Warren Buffett: Warren Buffett is considered by many to be the greatest investor of all time. As the chairman of Berkshire Hathaway, Buffett has consistently outperformed the S&P 500 for decades, and in the process has become one of the world's richest men. (Forbes puts his net worth at $37 billion.) Despite his fortune, Buffett is known for living a modest lifestyle, by billionaire standards. His primary residence remains the gray stucco Nebraska home he purchased for $31,500 nearly 50 years ago, according to Forbes, and his folksy Midwestern manner and penchant for simple pleasures -- a cherry Coke, a good burger, and a good book are all near the top of the list -- have been well-documented.
About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.