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Here's Why You Should Invest in athenahealth (ATHN) Now

athenahealth ATHN is currently one of the top performing stocks in the MedTech space. A strong guidance and focus on big data-based health records system favor the stock.

Price Performance

Over the past year, shares of athenahealth have rallied 1% against the industry’s 13% decline. The current level also compares favorably with the S&P 500 index’s 1% decline.

The stock carries a Zacks Rank #2 (Buy).

Let us take a quick look at the factors that make athenahealth a solid pick for now.

What Makes athenahealth an Attractive Pick?

Guidance Strong

Under the new revenue recognition standard, athenahealth expects 2018 revenues in the range of $1.34-$1.37 billion.

Adjusted operating income is projected in the range of $244-$270 million for 2018.

Adjusted operating margin is expected in the band of 18.3-19.8% of net revenues for 2018.

Focus on Big Data

The use of Electronic Health Record (EHR) and Electronic Medical record services in the U.S. MedTech space has been gradually gaining prominence.

athenahealth’s cloud-based big data networks like athenaNet, athenaClinicals, athenaClinicals-Streamlined, athenaInsight, athenaCommunicator and athenaOne deserve a special mention in this regard. These also lend the company an edge over the rest.

athenahealth, Inc. Price and Consensus

 

athenahealth, Inc. Price and Consensus | athenahealth, Inc. Quote

Which Way Are Estimates Headed?

For the fourth quarter of 2018, the Zacks Consensus Estimate is pegged at $1.14, reflecting year-over-year growth of 2.7%. The same for revenues stands at $358.3 million, mirroring an 8.9% improvement year over year.

For 2018, the Zacks Consensus Estimate for earnings is pinned at $4.20, reflecting a 69.3% rise from a year ago. For revenues, the same is pegged at $1.35 billion, indicating a 10.3% rise.

Bottom Line

athenahealth has a Growth Score of A. This reflects possibilities of outperformance over the long haul. Our research shows that stocks with a Growth Score of A or B, when combined with a Zacks Rank #1 (Strong Buy) or 2, are better picks than most.

Other Key Picks

Other top-ranked stocks in the broader medical space are Integer Holdings Corporation ITGR, OPKO Health, Inc. OPK and Surmodics SRDX.

Integer Holdings has an earnings growth rate of 31.2% for the next quarter and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

OPKO Health’s long-term earnings growth rate is projected at 12%. The stock carries a Zacks Rank of 2.

Surmodics’ long-term earnings growth rate is estimated at 10%. The stock carries a Zacks Rank #2.

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athenahealth, Inc. (ATHN) : Free Stock Analysis Report
 
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