OSI Systems (OSIS) Stock Trades Up, Here Is Why

What Happened:

Shares of electronic components and systems provider OSI Systems (NASDAQGS:OSIS) jumped 6.4% in the morning session after the company reported second-quarter earnings results, with revenue and EPS exceeding Wall Street's estimates. The strong performance was driven by outperformance in the Security division. With backlog near all-time highs and given the "robust pipeline of opportunities," management gave promising financial projections as full-year sales and EPS guidance both came in ahead of consensus. Zooming out, we think this was a strong quarter.

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What is the market telling us:

OSI Systems’s shares are not very volatile than the market average and over the last year have had only 3 moves greater than 5%. In context of that, today’s move is indicating the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.

OSI Systems is up 22.4% since the beginning of the year, and at $157.60 per share, has set a new 52-week high. Investors who bought $1,000 worth of OSI Systems’s shares 5 years ago would now be looking at an investment worth $1,548.

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