Allscripts Healthcare Solutions, Inc. (NASDAQ:MDRX) is well poised for growth on the back of strategic acquisitions and divestments, and strong prospects in Sunrise EHR platform. However, integration risks remain a concern.
The stock currently carries a Zacks Rank #3 (Hold).
Price Performance
Shares of Allscripts have gained 17.4%, underperforming the industry’s growth of 32.5% on a year-to-date basis. However, the stock outpaced the S&P 500 Index’s rally of 16.4%.
What’s Weighing on the Stock?
Given the dependence on acquisitions and mergers, the company is exposed to considerable integration risks.
Moreover, stiff competition in the niche space is an added concern.
Factors to Boost Allscripts
Allscripts continues to benefit from acquisitions and mergers, which in turn will accelerate the company’s overall performance and contribute substantially to the top line.
Moreover, the company continues to gain traction from the prospective Sunrise and Paragon EHR platform — an important growth driver of Allscripts. Notably, the company’s EHR diagnostic tools, including dbMotion, EPSi, FollowMyHealth and 2bPrecise, have been witnessing a growing list of clients outside the company’s EHR base.
Allscripts continues to gain from its Software, Delivery, Support and Maintenance units, which delivered solid growth in the last couple of quarters. Significant growth in bookings also buoys optimism.
Which Way Are Estimates Headed?
For 2019, the Zacks Consensus Estimate for revenues is pegged at $1.79 billion, indicating a decline of 15.9% from the year-ago period. For adjusted earnings per share, the same stands at 68 cents, suggesting a fall of 5.6% from the year-ago reported figure.
Key Picks
Some better-ranked stocks from the broader medical space are Cardiovascular Systems, Inc. (NASDAQ:CSII) , Oxford Immunotec Global PLC (NASDAQ:OXFD) and Haemonetics Corporation (NYSE:HAE) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Cardiovascular Systems has earnings growth rate for fiscal fourth quarter of 2019 of 33.3%.
Oxford Immunotec has a long-term earnings growth rate of 25%.
Haemonetics has a long-term earnings growth rate 13.5%.
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Allscripts Healthcare Solutions, Inc. (MDRX): Free Stock Analysis Report
Oxford Immunotec Global PLC (OXFD): Free Stock Analysis Report
Haemonetics Corporation (HAE): Free Stock Analysis Report
Cardiovascular Systems, Inc. (CSII): Free Stock Analysis Report
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