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Here's Why You Should Hold NextGen (NXGN) in Your Portfolio
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NextGen Healthcare, Inc. is well poised for growth on a plethora of product launches and a solid trend in the electronic health record (EHR) markets. However, tough competition is persistently offsetting these positives.
Shares of NextGen Healthcare have gained 38.1% against the industry’s decline of 9.3% in the past six months.
The company with a market capitalization of $1.25 billion is a developer and marketer of healthcare information systems. It anticipates an earnings improvement of 8.5% over the next five years. Moreover, its earnings beat estimates in each of the trailing four quarters by 49.2%, on average.
Let’s take a closer look at the factors that substantiate the company’s current Zacks Rank #3 (Hold) status.
Solid Demand for NextGen Solutions: Through the third-quarter fiscal 2021, the company continued to demonstrate strength in its NextGen integrated ambulatory platform.It plans to further capitalize on the success of its integrated solution by shifting its client base to its Spring ’21 release, which leverages its new patient experience platform.
In December 2020, management announced that the company’s client Bridges Health Partners LLC managed to boost quality of patient care and attain value-based care financial goals throughout its wide network of 1,100 physicians with the aid of NextGen Population Health. Further, the company informed that its NextGen Health Data Hub (HDH) is chosen by HI-BRIDGE HIE (health information exchange). In March 2021, the company announced that Maine’s largest statewide physician-owned multispecialty organization Spectrum Healthcare Partners adopted its portfolio of integrated solutions for its orthopedic division.
In April, the company launched its expanded platform for ambulatory providers, which is the Spring ’21 release of NextGen Enterprise.
Big Data-Based EHR System: Electronic health record (EHR) services in the U.S. MedTech space have been gaining prominence for a while now.
In January 2021, the company announced that FPA Women’s Health deployed its integrated NextGen Patient Experience Platform to offer continuity of care during the COVID-19 pandemic. Notably, FPA Women’s Health is a mid-sized specialty medical group committed to women’s healthcare. Integration with the NextGen Enterprise EHR for patient self-scheduling and virtual visit solutions reduced the risk of duplicative chart problems, which is a major challenge. This, in turn, will likely bolster NextGen’s presence in the global healthcare information technology (HCIT) space.
Again, in the same month, the company announced that its renowned cloud-based EHR platform NextGen Office managed to facilitate provider-owned healthcare practices across the United States. Notably, the NextGen Office solution will act as a financial cushion amid the COVID-19 health crisis and maintain business stability, which is expected to drive growth in the long term.
However, there is a factor marring growth.
Cutthroat Competition in the HCIT Space: The healthcare information technology (HCIT) market is highly competitive. Also, the industry is exceedingly fragmented and includes numerous players.
Which Way Are Estimates Headed?
For fiscal 2021, the Zacks Consensus Estimate for revenues is pegged at $552.4 million, indicating a rise of 2.3% from the prior-year reported number. The same for earnings stands at 97 cents per share, suggesting a rise of 16.9% from the year-ago reported figure.
HillRom has a projected long-term earnings growth rate of 7.3%.
Surmodics has a projected long-term earnings growth rate of 10%.
Veeva has an estimated long-term earnings growth rate of 14.5%.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
Image: Bigstock
Here's Why You Should Hold NextGen (NXGN) in Your Portfolio
NextGen Healthcare, Inc. is well poised for growth on a plethora of product launches and a solid trend in the electronic health record (EHR) markets. However, tough competition is persistently offsetting these positives.
Shares of NextGen Healthcare have gained 38.1% against the industry’s decline of 9.3% in the past six months.
The company with a market capitalization of $1.25 billion is a developer and marketer of healthcare information systems. It anticipates an earnings improvement of 8.5% over the next five years. Moreover, its earnings beat estimates in each of the trailing four quarters by 49.2%, on average.
Let’s take a closer look at the factors that substantiate the company’s current Zacks Rank #3 (Hold) status.
Solid Demand for NextGen Solutions: Through the third-quarter fiscal 2021, the company continued to demonstrate strength in its NextGen integrated ambulatory platform.It plans to further capitalize on the success of its integrated solution by shifting its client base to its Spring ’21 release, which leverages its new patient experience platform.
In December 2020, management announced that the company’s client Bridges Health Partners LLC managed to boost quality of patient care and attain value-based care financial goals throughout its wide network of 1,100 physicians with the aid of NextGen Population Health. Further, the company informed that its NextGen Health Data Hub (HDH) is chosen by HI-BRIDGE HIE (health information exchange). In March 2021, the company announced that Maine’s largest statewide physician-owned multispecialty organization Spectrum Healthcare Partners adopted its portfolio of integrated solutions for its orthopedic division.
In April, the company launched its expanded platform for ambulatory providers, which is the Spring ’21 release of NextGen Enterprise.
Big Data-Based EHR System: Electronic health record (EHR) services in the U.S. MedTech space have been gaining prominence for a while now.
In January 2021, the company announced that FPA Women’s Health deployed its integrated NextGen Patient Experience Platform to offer continuity of care during the COVID-19 pandemic. Notably, FPA Women’s Health is a mid-sized specialty medical group committed to women’s healthcare. Integration with the NextGen Enterprise EHR for patient self-scheduling and virtual visit solutions reduced the risk of duplicative chart problems, which is a major challenge. This, in turn, will likely bolster NextGen’s presence in the global healthcare information technology (HCIT) space.
Again, in the same month, the company announced that its renowned cloud-based EHR platform NextGen Office managed to facilitate provider-owned healthcare practices across the United States. Notably, the NextGen Office solution will act as a financial cushion amid the COVID-19 health crisis and maintain business stability, which is expected to drive growth in the long term.
However, there is a factor marring growth.
Cutthroat Competition in the HCIT Space: The healthcare information technology (HCIT) market is highly competitive. Also, the industry is exceedingly fragmented and includes numerous players.
Which Way Are Estimates Headed?
For fiscal 2021, the Zacks Consensus Estimate for revenues is pegged at $552.4 million, indicating a rise of 2.3% from the prior-year reported number. The same for earnings stands at 97 cents per share, suggesting a rise of 16.9% from the year-ago reported figure.
Stocks to Consider
Some better-ranked stocks from the broader medical space are HillRom Holdings , Surmodics (SRDX - Free Report) and Veeva Systems (VEEV - Free Report) . While Surmodics currently sports a Zacks Rank #1 (Strong Buy), the other two presently carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
HillRom has a projected long-term earnings growth rate of 7.3%.
Surmodics has a projected long-term earnings growth rate of 10%.
Veeva has an estimated long-term earnings growth rate of 14.5%.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
See the 5 high-tech stocks now>>