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Allscripts (MDRX) Acknowledged by LPP's CDIS Framework

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Renowned information technology and service provider to healthcare organizations, Allscripts Healthcare Solutions, Inc. (MDRX - Free Report) recently announced that it has been accepted and acknowledged by the NHS London Procurement Partnership (LPP) in its Clinical and Digital Information Systems (CDIS) Framework.

Notably, LPP is a membership organization, founded and funded by the NHS organizations. The NHS spends almost £18 billion across England and Wales for improvement of healthcare by supporting collaboration among acute, mental health, community and primary care organizations. The CDIS platform under LPP provides a unified solution for efficient management of key clinical and administrative data to organizations. Organizations that are on the CDIS platform comply with the National Information Board’s Personalised Health and Care 2020 framework as well. CDIS gives access to a suite of software applications to the companies registered on the platform.

Notably, Allscripts has been accepted onto the CDIS framework for its Sunrise Electronic Patient Record platform, CareInMotion and 2bPrecise population health IT solutions.

A glimpse of the price trend of the company reveals that the stock has had an impressive run on the bourse year to date. Allscripts added 16.9%, comparing favorably with the Zacks classified Medical Info Systems sub-industry’s gain of 14.1%. Also, the current level compares favorably with the S&P 500’s return of 6.6% over the same time frame.

Despite the bullish price trend, estimate revision for the stock has been dismal. The full year has seen seven analysts move south over the last one month, with one movement in the opposite direction. As a result, the Zacks Consensus Estimate for the full year dropped 6% to 47 cents over the same time frame. Notably, the stock has Zacks Rank #3 (Hold).

Allscripts has been gaining prominence in the markets with its broad array of products that include Sunrise, CareInMotion and 2bPrecise. Per management, the company would be able to provide its clients with superior quality of healthcare and fortify its position in the niche markets with the latest development.

This also closely follows the recent launch of Clinical Pathways program for the treatment of cancer. The platform was launched in collaboration with Cancer Treatment Centers of America (CTCA), a national network of five hospitals that serve adult cancer patients and NantHealth, a member of the NantWorks ecosystem of companies (read more: Allscripts Launches Clinical Pathways for Cancer Treatment).

Bottom Line

Allscripts’ management is focused on various restructuring initiatives such as streamlining operational efficiency, increasing R&D and catering to client needs. We believe favorable demographic trends, reinforced by a supportive regulatory environment, are expected to sustain growth in demand of its services.

Higher client demand for the company’s population health management solutions by healthcare systems, hospitals and ambulatory markets should also drive growth over the long haul.

Stocks to Consider

Better-ranked stocks in the broader medical sector include IDEXX Laboratories, Inc. (IDXX - Free Report) , Avinger, Inc. (AVGR - Free Report) and Fluidigm Corp. . All the three stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks (Strong Buy) here.

IDEXX Laboratories has a long-term expected earnings growth rate of approximately 15.04%. Notably, the stock represents an impressive one-year return of 90.6%.

Avinger projects sales growth of 30.7% for the current year. Additionally, the company posted a positive earnings surprise of 27% in the last quarter.

Fluidigm has a long-term expected earnings growth rate of 25%. Additionally, the company posted a positive earnings surprise of 1.6% in the last quarter.

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