We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Here's Why Investors Should Retain athenahealth (ATHN) Stock
Read MoreHide Full Article
athenahealth, Inc.’s strong product portfolio, solid network expansion strategies and unique business model buoy optimism. However, the company faces cutthroat competition in the MedTech space.
In the past year, shares of this Zacks Rank #3 (Hold) company have lost 3.2%, outperforming its industry's 18.5% decline. The current level also compares favorably with the S&P 500 index's 7.6% decline.
Here we take a quick look at the primary factors that have been plaguing athenahealth and discuss the prospects that ensure its near-term recovery.
Cutthroat Market Competition
athenahealth’s EHR solution faces stiff competition from the likes of Allscripts Healthcare Solutions and others. MedTech behemoths like Cerner offer long-standing seamless products integrating inpatient and ambulatory-care systems.
Further, SaaS-based models put athenahealth’s pricing under pressure. Stringent hospital budgets also lead to weak pricing, which will continue to hurt athenahealth’s profitability.
Why Should You Hold the Stock?
athenahealth’s portfolio comprises a wide array of products that include electronic health records, revenue cycle management, medical billing, patient engagement, care coordination, population health management and Epocrates.
athenaInsight, an online news hub that reports on U.S. healthcare activities and trends of healthcare providers and ‘de-identified patients’, has also been fortifying the company’s footprint.
Last year, athenahealth rapidly expanded its patient record sharing capabilities with CommonWell and Carequality.
Notably, athenaClinicals is the company’s first economically sustainable, service-based electronic medical records (EMR) system. Among other activities, athenahealth purchased Proxsys, LLC — a care coordination company — and launched athenaCoordinator (now athenaCoordinator Core) for order transmission and care collaboration with secure text message.
These apart, athenahealth recently announced that it has entered into a definitive agreement under which to be acquired by Veritas Capital for approximately $5.7 billion in cash. Under the terms of the deal, athenahealth shareholders will receive $135 in cash per share. After the completion of the acquisition, athenahealth is expected to be combined with Virence Health ("Virence") – the GE Healthcare Value-based Care assets – that Veritas acquired earlier this year. The transaction is expected to close in the first quarter of 2019.
Which Way Are Estimates Headed?
For the fourth quarter of 2019, the Zacks Consensus Estimate for earnings is pegged at $1.14, up 2.7% year over year. The same for revenues is pinned at $358.3 million, mirroring an increase of 8.9% year over year.
For 2019, the Zacks Consensus Estimate for revenues is $1.35 billion. The same for earnings stands at $4.20, up 69.4% year over year.
A few better-ranked stocks in the broader medical space are Veeva Systems Inc (VEEV - Free Report) , Becton, Dickinson and Company (BDX - Free Report) and OPKO Health, Inc (OPK - Free Report) .
Becton, Dickinson’s long-term earnings growth rate is projected at 11.5%. The stock carries a Zacks Rank #2 (Buy).
OPKO Health’s long-term earnings growth rate is projected at 12%. The stock sports a Zacks Rank of 1.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
Image: Bigstock
Here's Why Investors Should Retain athenahealth (ATHN) Stock
athenahealth, Inc.’s strong product portfolio, solid network expansion strategies and unique business model buoy optimism. However, the company faces cutthroat competition in the MedTech space.
In the past year, shares of this Zacks Rank #3 (Hold) company have lost 3.2%, outperforming its industry's 18.5% decline. The current level also compares favorably with the S&P 500 index's 7.6% decline.
Here we take a quick look at the primary factors that have been plaguing athenahealth and discuss the prospects that ensure its near-term recovery.
Cutthroat Market Competition
athenahealth’s EHR solution faces stiff competition from the likes of Allscripts Healthcare Solutions and others. MedTech behemoths like Cerner offer long-standing seamless products integrating inpatient and ambulatory-care systems.
Further, SaaS-based models put athenahealth’s pricing under pressure. Stringent hospital budgets also lead to weak pricing, which will continue to hurt athenahealth’s profitability.
Why Should You Hold the Stock?
athenahealth’s portfolio comprises a wide array of products that include electronic health records, revenue cycle management, medical billing, patient engagement, care coordination, population health management and Epocrates.
athenaInsight, an online news hub that reports on U.S. healthcare activities and trends of healthcare providers and ‘de-identified patients’, has also been fortifying the company’s footprint.
Last year, athenahealth rapidly expanded its patient record sharing capabilities with CommonWell and Carequality.
Notably, athenaClinicals is the company’s first economically sustainable, service-based electronic medical records (EMR) system. Among other activities, athenahealth purchased Proxsys, LLC — a care coordination company — and launched athenaCoordinator (now athenaCoordinator Core) for order transmission and care collaboration with secure text message.
These apart, athenahealth recently announced that it has entered into a definitive agreement under which to be acquired by Veritas Capital for approximately $5.7 billion in cash. Under the terms of the deal, athenahealth shareholders will receive $135 in cash per share. After the completion of the acquisition, athenahealth is expected to be combined with Virence Health ("Virence") – the GE Healthcare Value-based Care assets – that Veritas acquired earlier this year. The transaction is expected to close in the first quarter of 2019.
Which Way Are Estimates Headed?
For the fourth quarter of 2019, the Zacks Consensus Estimate for earnings is pegged at $1.14, up 2.7% year over year. The same for revenues is pinned at $358.3 million, mirroring an increase of 8.9% year over year.
For 2019, the Zacks Consensus Estimate for revenues is $1.35 billion. The same for earnings stands at $4.20, up 69.4% year over year.
athenahealth, Inc. Price and Consensus
athenahealth, Inc. Price and Consensus | athenahealth, Inc. Quote
Key Picks
A few better-ranked stocks in the broader medical space are Veeva Systems Inc (VEEV - Free Report) , Becton, Dickinson and Company (BDX - Free Report) and OPKO Health, Inc (OPK - Free Report) .
Veeva Systems’ long-term earnings growth rate is projected at 19.5%. The stock currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Becton, Dickinson’s long-term earnings growth rate is projected at 11.5%. The stock carries a Zacks Rank #2 (Buy).
OPKO Health’s long-term earnings growth rate is projected at 12%. The stock sports a Zacks Rank of 1.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>