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Here's Why You Should Add Omnicell to Your Portfolio Now
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Omnicell (OMCL - Free Report) is progressing well with product innovation and international expansion. Acquisitions and partnerships have also been propelling growth.
In the past three months, the company’s shares have outperformed the industry. The stock has rallied 10.8% compared with the industry’s 5.3% rise.
This $3.44-billion developer of automated solutions for medication use expects earnings growth of 12.5% in the next five years. Also, the company has a trailing four-quarter positive earnings surprise of 15.9%, on average.
Let’s delve deeper into the factors working in favor of this Zacks Rank #2 (Buy) stock.
Product Innovation Driving Growth: The company has been gaining solid traction with the G4 platform. In recent times, Omnicell has strengthened its foothold in the marketplace through its differentiated platform and innovative product portfolio, which includes the latest XT series. The company has also been witnessing strong new conversion wins for the XT series. In the long term, Omnicell expects to witness continuous growth in the pipeline, bookings and live XT frames.
Autonomous Pharmacy Model Holds Potential:In the third quarter of 2019, Omnicell’s XT automated dispensing systems were implemented by Salem Health’s hospitals and clinics. Additionally, Salem Health will integrate XT automated dispensing systems to the hospital’s electronic health record system to streamline workflows, improve efficiencies of nursing pharmacy and increase patient safety.
International Expansion Solid: Omnicell’s Non-Acute Care segment has been witnessing solid overseas market penetration in recent times. While the company continues to focus on the Middle East and South Africa, it has also been witnessing solid adoption of its technologies in other parts of the world, like Australia, United Kingdom, parts of Asia, Germany and France. Recently, the company announced its first IV robotics deal and forayed into the South Korean market with several hospital locations.
Acquisitions and Partnerships Add Value: One of the key partnerships inked by the company in the third quarter is with Spartanburg Regional Healthcare System (an integrated healthcare delivery network in South and North Carolina). It has selected Omnicell Solutions for flagship research. Additionally, the company has secured several long-term partnership commitments with leading healthcare systems, including St. Luke's University Health Network and Northern Arizona Healthcare, among others. These are likely to be enhancing Omnicell’s business prospects in the near future.
Which Way Are Estimates Treading?
For the fourth quarter of 2019, the Zacks Consensus Estimate for earnings is pegged at 78 cents, which indicates 11.4% rise from the year-ago quarter’s figure. The same for revenues is pegged at $242.9 billion, calling for year-over-year growth of 14.7% from the prior-year quarter’s number.
The Zacks Consensus Estimate for 2019 earnings is pegged at $2.82, suggesting 34.9% year-over-year growth from the year-ago figure. The same for revenues is pegged at $891.7 million, suggesting 13.3% rise from the prior-year number.
Haemonetics has a projected long-term earnings growth rate of 13.5%.
NuVasive has an expected long-term earnings growth rate of 10.9%.
ResMed has a long-term earnings growth rate of 12.9%.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
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Here's Why You Should Add Omnicell to Your Portfolio Now
Omnicell (OMCL - Free Report) is progressing well with product innovation and international expansion. Acquisitions and partnerships have also been propelling growth.
In the past three months, the company’s shares have outperformed the industry. The stock has rallied 10.8% compared with the industry’s 5.3% rise.
This $3.44-billion developer of automated solutions for medication use expects earnings growth of 12.5% in the next five years. Also, the company has a trailing four-quarter positive earnings surprise of 15.9%, on average.
Let’s delve deeper into the factors working in favor of this Zacks Rank #2 (Buy) stock.
Product Innovation Driving Growth: The company has been gaining solid traction with the G4 platform. In recent times, Omnicell has strengthened its foothold in the marketplace through its differentiated platform and innovative product portfolio, which includes the latest XT series. The company has also been witnessing strong new conversion wins for the XT series. In the long term, Omnicell expects to witness continuous growth in the pipeline, bookings and live XT frames.
Autonomous Pharmacy Model Holds Potential:In the third quarter of 2019, Omnicell’s XT automated dispensing systems were implemented by Salem Health’s hospitals and clinics. Additionally, Salem Health will integrate XT automated dispensing systems to the hospital’s electronic health record system to streamline workflows, improve efficiencies of nursing pharmacy and increase patient safety.
International Expansion Solid: Omnicell’s Non-Acute Care segment has been witnessing solid overseas market penetration in recent times. While the company continues to focus on the Middle East and South Africa, it has also been witnessing solid adoption of its technologies in other parts of the world, like Australia, United Kingdom, parts of Asia, Germany and France. Recently, the company announced its first IV robotics deal and forayed into the South Korean market with several hospital locations.
Acquisitions and Partnerships Add Value: One of the key partnerships inked by the company in the third quarter is with Spartanburg Regional Healthcare System (an integrated healthcare delivery network in South and North Carolina). It has selected Omnicell Solutions for flagship research. Additionally, the company has secured several long-term partnership commitments with leading healthcare systems, including St. Luke's University Health Network and Northern Arizona Healthcare, among others. These are likely to be enhancing Omnicell’s business prospects in the near future.
Which Way Are Estimates Treading?
For the fourth quarter of 2019, the Zacks Consensus Estimate for earnings is pegged at 78 cents, which indicates 11.4% rise from the year-ago quarter’s figure. The same for revenues is pegged at $242.9 billion, calling for year-over-year growth of 14.7% from the prior-year quarter’s number.
The Zacks Consensus Estimate for 2019 earnings is pegged at $2.82, suggesting 34.9% year-over-year growth from the year-ago figure. The same for revenues is pegged at $891.7 million, suggesting 13.3% rise from the prior-year number.
Other Stocks Worth a Look
A few other top-ranked stocks from the broader medical space are Haemonetics Corporation (HAE - Free Report) , NuVasive, Inc and ResMed (RMD - Free Report) . While ResMed carries a Zacks Rank #1 (Strong Buy), the other two carry a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Haemonetics has a projected long-term earnings growth rate of 13.5%.
NuVasive has an expected long-term earnings growth rate of 10.9%.
ResMed has a long-term earnings growth rate of 12.9%.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>