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Omnicell (OMCL) Hits Fresh High: Is There Still Room to Run?
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Have you been paying attention to shares of Omnicell (OMCL - Free Report) ? Shares have been on the move with the stock up 14.7% over the past month. The stock hit a new 52-week high of $73.23 in the previous session. Omnicell has gained 50.6% since the start of the year compared to the 5.4% move for the Zacks Medical sector and the -5.2% return for the Zacks Medical Info Systems industry.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on October 25, 2018, Omnicell reported EPS of $0.63 versus consensus estimate of $0.56 while it beat the consensus revenue estimate by 0.39%.
For the current fiscal year, Omnicell is expected to post earnings of $2.04 per share on $790.2 million in revenues. This represents a 53.38% change in EPS on a 10.34% change in revenues. For the next fiscal year, the company is expected to earn $2.4 per share on $878.1 million in revenues. This represents a year-over-year change of 17.65% and 11.12%, respectively.
Valuation Metrics
Omnicell may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Omnicell has a Value Score of D. The stock's Growth and Momentum Scores are A and A, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 35.8X current fiscal year EPS estimates. On a trailing cash flow basis, the stock currently trades at 45.9X versus its peer group's average of 14.5X. Additionally, the stock has a PEG ratio of 3.04. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, Omnicell currently has a Zacks Rank of #1 (Strong Buy) thanks to favorable earnings estimate revisions from covering analysts.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Omnicell passes the test. Thus, it seems as though Omnicell shares could have potential in the weeks and months to come.
How Does Omnicell Stack Up to the Competition?
Shares of Omnicell have been rising, and the company still appears to be a decent choice, but what about the rest of the industry? Some of its industry peers are also impressive, including Computer Programs and Systems , Inogen (INGN - Free Report) , and ICU Medical (ICUI - Free Report) , all of which currently have a Zacks Rank of at least #2 and a VGM Score of at least B, making them well-rounded choices.
The Zacks Industry Rank is in the top 33% of all the industries we have in our universe, so it looks like there are some nice tailwinds for Omnicell, even beyond its own solid fundamental situation.
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Omnicell (OMCL) Hits Fresh High: Is There Still Room to Run?
Have you been paying attention to shares of Omnicell (OMCL - Free Report) ? Shares have been on the move with the stock up 14.7% over the past month. The stock hit a new 52-week high of $73.23 in the previous session. Omnicell has gained 50.6% since the start of the year compared to the 5.4% move for the Zacks Medical sector and the -5.2% return for the Zacks Medical Info Systems industry.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on October 25, 2018, Omnicell reported EPS of $0.63 versus consensus estimate of $0.56 while it beat the consensus revenue estimate by 0.39%.
For the current fiscal year, Omnicell is expected to post earnings of $2.04 per share on $790.2 million in revenues. This represents a 53.38% change in EPS on a 10.34% change in revenues. For the next fiscal year, the company is expected to earn $2.4 per share on $878.1 million in revenues. This represents a year-over-year change of 17.65% and 11.12%, respectively.
Valuation Metrics
Omnicell may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Omnicell has a Value Score of D. The stock's Growth and Momentum Scores are A and A, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 35.8X current fiscal year EPS estimates. On a trailing cash flow basis, the stock currently trades at 45.9X versus its peer group's average of 14.5X. Additionally, the stock has a PEG ratio of 3.04. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, Omnicell currently has a Zacks Rank of #1 (Strong Buy) thanks to favorable earnings estimate revisions from covering analysts.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Omnicell passes the test. Thus, it seems as though Omnicell shares could have potential in the weeks and months to come.
How Does Omnicell Stack Up to the Competition?
Shares of Omnicell have been rising, and the company still appears to be a decent choice, but what about the rest of the industry? Some of its industry peers are also impressive, including Computer Programs and Systems , Inogen (INGN - Free Report) , and ICU Medical (ICUI - Free Report) , all of which currently have a Zacks Rank of at least #2 and a VGM Score of at least B, making them well-rounded choices.
The Zacks Industry Rank is in the top 33% of all the industries we have in our universe, so it looks like there are some nice tailwinds for Omnicell, even beyond its own solid fundamental situation.