OSI Systems, Inc. - Common Stock (OSIS)

Companies that consistently increase their sales, margins, or returns on capital are usually rewarded with the best returns, and those that can do all three for years on end are almost always the legendary stocks that return 100 times your money.

Since July 2020, the S&P 500 has delivered a total return of 95.5%. But one standout stock has more than doubled the market - over the past five years, OSI Systems has surged 209% to $212.01 per share. Its momentum hasn’t stopped as it’s also gained 34% in the last six months thanks to its solid quarterly results, beating the S&P by 26.9%.

A company that generates cash isn’t automatically a winner. Some businesses stockpile cash but fail to reinvest wisely, limiting their ability to expand.

While profitability is essential, it doesn’t guarantee long-term success. Some companies that rest on their margins will lose ground as competition intensifies - as Jeff Bezos said, "Your margin is my opportunity".

Market swings can be tough to stomach, and volatile stocks often experience exaggerated moves in both directions. While many thrive during risk-on environments, many also struggle to maintain investor confidence when the ride gets bumpy.

While strong cash flow is a key indicator of stability, it doesn’t always translate to superior returns. Some cash-heavy businesses struggle with inefficient spending, slowing demand, or weak competitive positioning.

Security and healthcare technology company OSI Systems (NASDAQ:OSIS) reported Q1 CY2025 results beating Wall Street’s revenue expectations, with sales up 9.6% year on year to $444.4 million. The company expects the full year’s revenue to be around $1.7 billion, close to analysts’ estimates. Its non-GAAP profit of $2.44 per share was 1.5% above analysts’ consensus estimates.

Security and healthcare technology company OSI Systems (NASDAQ:OSIS) announced better-than-expected revenue in Q1 CY2025, with sales up 9.6% year on year to $444.4 million. The company expects the full year’s revenue to be around $1.70 billion, close to analysts’ estimates. Its non-GAAP profit of $2.44 per share was 1.5% above analysts’ consensus estimates.

Security and healthcare technology company OSI Systems (NASDAQ:OSIS) will be reporting earnings tomorrow before market open. Here’s what to expect.

Companies with solid operating margins have a competitive edge, allowing them to reinvest for sustainable expansion. The best of these businesses balance profitability with reinvestment, setting themselves up for long-term success.

In a sliding market, OSI Systems has defied the odds, trading up to $178.81 per share. Its 22.9% gain since October 2024 has outpaced the S&P 500’s 7% drop. This was partly due to its solid quarterly results, and the run-up might have investors contemplating their next move.

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