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Here's Why You Should Invest in Omnicell (OMCL) Stock Now
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Omnicell, Inc. (OMCL - Free Report) has been gaining investor confidence on continued positive results. Over the past year, the company’s share price has outperformed its industry. The stock has gained 48.1% against the industry’s 7.2% decline and the S&P 500’s 4.5% growth.
This leading developer and marketer of end-to-end automation solutions for the medication-use process has a market cap of $3.06 billion. The company has an expected earnings growth rate of 11.8% for the next three to five years.
With solid prospects, this Zacks Rank #1 (Strong Buy) stock is an attractive pick for investors at the moment.
What Makes the Stock an Attractive Pick?
Product Innovation Driving Growth
Omnicell is progressing well with its 3-legged strategy that covers market expansion through the delivery of differentiated and innovative solutions; expansion into new markets, primarily outside the United States; and expansion through partnerships and acquisition of new technologies.
The first leg of differentiated products continues to track new customers, who adopt the G4 platform, Omnicell’s analytics tools and medication adherence solutions. There has been strong adoption of the company’s G4 platform. Omnicell is witnessing strong conversion wins for this new XT series.
Planned Geographic Expansion Another Upside
Outside the United States, healthcare providers are becoming increasingly aware of benefits of automation. Given the fact that the international market is less than 1% penetrated, with very few hospitals adopting medication control systems, Omnicell has specified its second leg of strategies of expanding into new markets.
So far, this strategy is driving significant growth in the Non-Acute Care segment of Omnicell.While the company continues to focus on the Middle East and South Africa, it also sees greater adoption of technologies in other parts of the world, the latest one being Australia.
Acquisitions and Partnerships Add Value
The third leg of the strategy, including acquisition and partnerships, is also progressing successfully. The company's most recent buyout is InPharmics, a Mississippi-based technology and services company, which should help Omnicell in expanding the capabilities of its Performance Center. Omnicell is witnessing solid cross-selling momentum within its entire product platform and combined customer base, specifically for its XR2, IV, and Performance Center solutions in terms of both the pipeline and bookings.
Other Key Picks
Other top-ranked stocks in the broader medical space are Integer Holdings Corporation (ITGR - Free Report) , Surmodics, Inc. (SRDX - Free Report) and Veeva Systems (VEEV - Free Report) .
Surmodics’ long-term earnings growth rate is projected at 10%. The stock currently carries a Zacks Rank of 2.
Veeva Systems’ long-term earnings growth rate is estimated at 19.3%. The stock presently carries a Zacks Rank #2.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
Image: Bigstock
Here's Why You Should Invest in Omnicell (OMCL) Stock Now
Omnicell, Inc. (OMCL - Free Report) has been gaining investor confidence on continued positive results. Over the past year, the company’s share price has outperformed its industry. The stock has gained 48.1% against the industry’s 7.2% decline and the S&P 500’s 4.5% growth.
This leading developer and marketer of end-to-end automation solutions for the medication-use process has a market cap of $3.06 billion. The company has an expected earnings growth rate of 11.8% for the next three to five years.
With solid prospects, this Zacks Rank #1 (Strong Buy) stock is an attractive pick for investors at the moment.
What Makes the Stock an Attractive Pick?
Product Innovation Driving Growth
Omnicell is progressing well with its 3-legged strategy that covers market expansion through the delivery of differentiated and innovative solutions; expansion into new markets, primarily outside the United States; and expansion through partnerships and acquisition of new technologies.
The first leg of differentiated products continues to track new customers, who adopt the G4 platform, Omnicell’s analytics tools and medication adherence solutions. There has been strong adoption of the company’s G4 platform. Omnicell is witnessing strong conversion wins for this new XT series.
Planned Geographic Expansion Another Upside
Outside the United States, healthcare providers are becoming increasingly aware of benefits of automation. Given the fact that the international market is less than 1% penetrated, with very few hospitals adopting medication control systems, Omnicell has specified its second leg of strategies of expanding into new markets.
So far, this strategy is driving significant growth in the Non-Acute Care segment of Omnicell.While the company continues to focus on the Middle East and South Africa, it also sees greater adoption of technologies in other parts of the world, the latest one being Australia.
Acquisitions and Partnerships Add Value
The third leg of the strategy, including acquisition and partnerships, is also progressing successfully. The company's most recent buyout is InPharmics, a Mississippi-based technology and services company, which should help Omnicell in expanding the capabilities of its Performance Center. Omnicell is witnessing solid cross-selling momentum within its entire product platform and combined customer base, specifically for its XR2, IV, and Performance Center solutions in terms of both the pipeline and bookings.
Other Key Picks
Other top-ranked stocks in the broader medical space are Integer Holdings Corporation (ITGR - Free Report) , Surmodics, Inc. (SRDX - Free Report) and Veeva Systems (VEEV - Free Report) .
Integer has an expected earnings growth rate of 31.2% for the next quarter and a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Surmodics’ long-term earnings growth rate is projected at 10%. The stock currently carries a Zacks Rank of 2.
Veeva Systems’ long-term earnings growth rate is estimated at 19.3%. The stock presently carries a Zacks Rank #2.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
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