OSI Systems has a strong earnings beat streak and 35% analyst upside, but weak growth, very low free cash flow conversion at 24% of net income, high short interest of 17%, and an overall score of 4.8 place it in a cautious hold position with limited upside conviction.
Thesis pillars
- Weak Free Cash Flow Quality→Stable
- Earnings Beat Streak→Stable
- Analyst Upside 35pct→Stable
- +1 more pillar — see the Why tab for full reasoning
OSI Systems, Inc. (OSIS) Stock Analysis
Recovery setup
Technology · Electronic Components
Sell if holding. Multiple concerning factors at $198.92: Leverage penalty (D/E 1.3): -0.5; Sector modifier (Technology): -0.8.
We sell our products and provide related services in diversified markets, including homeland security, healthcare, defense and aerospace. Our company is incorporated in the State of Delaware and our principal office is located at 12525 Chadron Avenue, Hawthorne, California 90250.
Sell if holding. Multiple concerning factors at $198.92: Leverage penalty (D/E 1.3): -0.5; Sector modifier (Technology): -0.8. Chart setup: Death cross but MACD improving, RSI 43. Score 5.4/10, moderate confidence.
Passes 8/10 gates (positive momentum, favorable risk/reward ratio, clean insider activity, no SEC red flags, news events none recent, earnings proximity 34d clear, semi cycle peak clear, materials cycle peak clear). Suitability: aggressive.
Recent developments
updated 2026-09-25Recent Developments — OSI Systems, Inc.
Latest news
- NEWS OSI (OSIS) Quarter in Focus: The Available Earnings Metric Delivers a Beat in the Latest Session; Share Response: Shares — Vinanet positive
- NEWS Earnings To Watch: OSI Systems (OSIS) Reports Q2 Results Tomorrow - StockStory — StockStory positive
- NEWS Wall Street Analysts See a 25.1% Upside in OSI (OSIS): Can the Stock Really Move This High? - Yahoo Finance — Yahoo Finance neutral
- NEWS 3 Big Reasons to Love OSI Systems (OSIS) - The Globe and Mail — The Globe and Mail positive
- NEWS OSI Systems (OSIS) Q4 Earnings Top Estimates - Yahoo Finance — Yahoo Finance positive
Generated 2026-09-25T21:27:04Z.
Upcoming dated catalysts
Thesis
Key Metrics
Quality Signals
Options Flow
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.
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Rating Breakdown
2 floor-breakers
Revenue shrinking — -4.1% YoY. Growth thesis broken unless recovery story develops.static
Ranks in the bottom of its industry peers on the composite signal. Better names in the same sector exist.static
Price Targets
Position Sizing
Analyst Consensus
Earnings
Verdict History
Frequently Asked Questions
Sell if holding. Multiple concerning factors at $198.92: Leverage penalty (D/E 1.3): -0.5; Sector modifier (Technology): -0.8. Chart setup: Death cross but MACD improving, RSI 43. Prior stop was $189.46. Score 5.4/10, moderate confidence.
Take-profit target: $242.11 (+21.7% upside). Prior stop was $189.46. Stop-loss: $189.46.
Sector modifier (Technology): -0.8; Leverage penalty (D/E 1.3): -0.5; Weak growth.
OSI Systems, Inc. trades at a P/E of 22.7 (forward 15.7). TrendMatrix value score: 6.5/10. Verdict: Sell.
14 analysts cover OSIS with a consensus score of 4.3/5. Average price target: $278.
What does OSI Systems, Inc. do?We sell our products and provide related services in diversified markets, including homeland security, healthcare,...
We sell our products and provide related services in diversified markets, including homeland security, healthcare, defense and aerospace. Our company is incorporated in the State of Delaware and our principal office is located at 12525 Chadron Avenue, Hawthorne, California 90250.