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Allscripts Rides High On Product Launches Amid Rising Costs

Published 09/24/2017, 09:54 PM
Updated 07/09/2023, 06:31 AM

On Sep 22, we issued an updated research report on Allscripts Healthcare Solutions Inc. (NASDAQ:MDRX) . The company has been on a healthy growth trajectory of late. It has rallied 14.2% in the last one year, ahead of the S&P 500’s 11% gain. This Zacks Rank #3 (Hold) stock has a market cap of $2.47 billion.

Allscripts Healthcare provides information technology (IT) solutions and services to healthcare organizations.Higher adoption of the company’s EHR solutions, particularly the Sunrise EHR platform, will consistently drive the company’s top line and help it to counter stiff competition in the long run.

In an initiative to eradicate ambiguity while determining medicinal costs and discounts, Allscripts recently launched Allscripts Real-Time Health System, an exclusive work-flow solution to optimize the clinical and financial impact of medical prescriptions and enhance prescription price transparency.

With the latest launch, Allscripts aims at providing clinicians and patients with complete information on medication price, cost of alternative therapies, and competitive prices of the prescribed therapy at different pharmacies. Notably, Allscripts is the first major healthcare information technology player to come up with such a solution.

Allscripts Healthcare Solutions, Inc. Price

On the flipside, the company expects a modest increase in operating expenses during the second half of 2017. Allscripts’ products have a long sales cycle which involves decision-making at different managerial levels. This increases the company’s operating expenses.

Added to this, the lingering global economic weakness presents a substantial risk for Allscripts. Unlike the manufacturers of life-saving devices, the demand for the software company’s products is closely tied to budgetary processes of clients. As a result, the company has seen a significant decline in system sales due to a decline in customer orders.

Key Picks

A few better-ranked stocks in the broader medical sector are Edwards Lifesciences Corp. (NYSE:EW) , IDEXX Laboratories, Inc. (NASDAQ:IDXX) and Cogentix Medical, Inc. (NASDAQ:CGNT) .

Notably, Edwards Lifesciences sports a Zacks Rank #1 (Strong Buy), while IDEXX Laboratories and Cogentix Medical have a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Edwards Lifesciences delivered an average earnings beat of 10.8% over the last four quarters. The company has a long-term expected earnings growth rate of 15.2%.

IDEXX Laboratories delivered an average earnings beat of 9.3% over the trailing four quarters. It has a long-term expected earnings growth rate of 19.8%.

Cogentix Medical came up with a positive earnings surprise of 200% in the last quarter. The stock represented a stellar return of 100.9% over the last year.

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Allscripts Healthcare Solutions, Inc. (MDRX): Free Stock Analysis Report

IDEXX Laboratories, Inc. (IDXX): Free Stock Analysis Report

Cogentix Medical, Inc. (CGNT): Free Stock Analysis Report

Edwards Lifesciences Corporation (EW): Free Stock Analysis Report

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