We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Here's Why You Should Hold NextGen (NXGN) Stock For Now
Read MoreHide Full Article
NextGen Healthcare, Inc. is well-poised for growth backed by strong demand for its solutions and strength in electronic health records (EHR).
Shares of this Zacks Rank #3 (Hold) company have lost 3.6% compared with the industry’s decline of 54.1% in a year’s time. The S&P 500 Index has rallied 6.1% in the same time frame.
NextGen — with a market capitalization of $1.29 billion — is a developer and marketer of healthcare information systems. It anticipates earnings to improve 5% over the next five years. The company has a trailing four-quarter earnings surprise of 17.5%, on average.
Key Catalysts
NextGen continues to benefit from strong demand for its solutions.
In December 2021, NextGen announced that northern New-Mexico-based non-profit FQHC — El Centro Family Health (El Centro) — has selected the NextGen Enterprise platform to serve its rapidly expanding community. The same month, the company announced that New Jersey-based FQHC Monmouth Family Health Center (Monmouth) had adopted its comprehensive solution suite including NextGen Enterprise EHR and PM, as well as NextGen EDR (electronic dental records), NextGen Mobile and NextGen Patient Experience Platform featuring NextGen Patient Self-Scheduling and NextGen Virtual Visits.
In November, Eye Center South started utilizing NextGen Mobile to improve practice efficiency and bolster patient volume and access. In October, Community Health Center of Snohomish County (CHC of Snohomish County), a federally qualified health center (FQHC) in Washington state, adopted the company’s full solution suite including NextGen Enterprise EHR and NextGen Enterprise PM as well as NextGen Population Health and NextGen Patient Experience Platform.
Image Source: Zacks Investment Research
In the same month, NextGen’s client Mednax, Inc. expanded its use of NextGen’s integrated platform. Mednax adopted NextGen Virtual Visits to see and treat patients remotely and NextGen Mobile, which allows its providers to access schedules and records, streamline clinical documentation and collaborate with other care team members, all from a smartphone.
Strong prospects in EHR remain a tailwind. For instance, in October, the company collaborated with Validic to incorporate real-time remote patient monitoring (RPM) into its NextGen Virtual Visits telehealth solution. NextGen Virtual Visits is seamlessly integrated into NextGen Enterprise EHR.
Factor Hurting the Stock
The healthcare information technology (HCIT) market is highly competitive. The industry is also exceedingly fragmented and includes numerous players. We will have to see whether the company succeeds in penetrating the EHR market where it faces competition from low-priced cloud-based EHR models.
Estimates Trend
NextGen has been witnessing an upward estimate revision trend for fiscal 2022. In the past 60 days, the Zacks Consensus Estimate for its earnings has moved north by 4.2% to 99 cents.
The Zacks Consensus Estimate for fiscal fourth-quarter 2022 revenues is pegged at $148.1 million, suggesting growth of 2.7% from the year-ago reported number.
Stocks to Consider
Some better-ranked stocks from the broader medical space are AMN Healthcare Services, Inc. (AMN - Free Report) , Henry Schein, Inc. (HSIC - Free Report) and McKesson Corporation (MCK - Free Report) .
AMN Healthcare surpassed earnings estimates in each of the trailing four quarters, the average surprise being 20%. The company currently sports a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
AMN Healthcare’s long-term earnings growth rate is estimated at 16.2%. AMN’s earnings yield of 8.8% compares favorably with the industry’s 0.3%.
Henry Schein beat earnings estimates in each of the trailing four quarters, the average surprise being 25.5%. The company currently sports a Zacks Rank #2 (Buy).
Henry Schein’s long-term earnings growth rate is estimated at 11.8%. HSIC’s earnings yield of 5.6% compares favorably with the industry’s 4.1%.
McKesson surpassed earnings estimates in each of the trailing four quarters, the average surprise being 20.6%. The company currently carries a Zacks Rank #2.
McKesson’s long-term earnings growth rate is estimated at 11.8%. MCK’s earnings yield of 8.8% compares favorably with the industry’s 4.1%.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Here's Why You Should Hold NextGen (NXGN) Stock For Now
NextGen Healthcare, Inc. is well-poised for growth backed by strong demand for its solutions and strength in electronic health records (EHR).
Shares of this Zacks Rank #3 (Hold) company have lost 3.6% compared with the industry’s decline of 54.1% in a year’s time. The S&P 500 Index has rallied 6.1% in the same time frame.
NextGen — with a market capitalization of $1.29 billion — is a developer and marketer of healthcare information systems. It anticipates earnings to improve 5% over the next five years. The company has a trailing four-quarter earnings surprise of 17.5%, on average.
Key Catalysts
NextGen continues to benefit from strong demand for its solutions.
In December 2021, NextGen announced that northern New-Mexico-based non-profit FQHC — El Centro Family Health (El Centro) — has selected the NextGen Enterprise platform to serve its rapidly expanding community. The same month, the company announced that New Jersey-based FQHC Monmouth Family Health Center (Monmouth) had adopted its comprehensive solution suite including NextGen Enterprise EHR and PM, as well as NextGen EDR (electronic dental records), NextGen Mobile and NextGen Patient Experience Platform featuring NextGen Patient Self-Scheduling and NextGen Virtual Visits.
In November, Eye Center South started utilizing NextGen Mobile to improve practice efficiency and bolster patient volume and access. In October, Community Health Center of Snohomish County (CHC of Snohomish County), a federally qualified health center (FQHC) in Washington state, adopted the company’s full solution suite including NextGen Enterprise EHR and NextGen Enterprise PM as well as NextGen Population Health and NextGen Patient Experience Platform.
Image Source: Zacks Investment Research
In the same month, NextGen’s client Mednax, Inc. expanded its use of NextGen’s integrated platform. Mednax adopted NextGen Virtual Visits to see and treat patients remotely and NextGen Mobile, which allows its providers to access schedules and records, streamline clinical documentation and collaborate with other care team members, all from a smartphone.
Strong prospects in EHR remain a tailwind. For instance, in October, the company collaborated with Validic to incorporate real-time remote patient monitoring (RPM) into its NextGen Virtual Visits telehealth solution. NextGen Virtual Visits is seamlessly integrated into NextGen Enterprise EHR.
Factor Hurting the Stock
The healthcare information technology (HCIT) market is highly competitive. The industry is also exceedingly fragmented and includes numerous players. We will have to see whether the company succeeds in penetrating the EHR market where it faces competition from low-priced cloud-based EHR models.
Estimates Trend
NextGen has been witnessing an upward estimate revision trend for fiscal 2022. In the past 60 days, the Zacks Consensus Estimate for its earnings has moved north by 4.2% to 99 cents.
The Zacks Consensus Estimate for fiscal fourth-quarter 2022 revenues is pegged at $148.1 million, suggesting growth of 2.7% from the year-ago reported number.
Stocks to Consider
Some better-ranked stocks from the broader medical space are AMN Healthcare Services, Inc. (AMN - Free Report) , Henry Schein, Inc. (HSIC - Free Report) and McKesson Corporation (MCK - Free Report) .
AMN Healthcare surpassed earnings estimates in each of the trailing four quarters, the average surprise being 20%. The company currently sports a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
AMN Healthcare’s long-term earnings growth rate is estimated at 16.2%. AMN’s earnings yield of 8.8% compares favorably with the industry’s 0.3%.
Henry Schein beat earnings estimates in each of the trailing four quarters, the average surprise being 25.5%. The company currently sports a Zacks Rank #2 (Buy).
Henry Schein’s long-term earnings growth rate is estimated at 11.8%. HSIC’s earnings yield of 5.6% compares favorably with the industry’s 4.1%.
McKesson surpassed earnings estimates in each of the trailing four quarters, the average surprise being 20.6%. The company currently carries a Zacks Rank #2.
McKesson’s long-term earnings growth rate is estimated at 11.8%. MCK’s earnings yield of 8.8% compares favorably with the industry’s 4.1%.