PRA Health Sciences, Inc. PRAH is currently one of the top-performing stocks in the Medical Services industry . Strategic global expansion and a raised guidance are major positives at the moment.
Shares of PRA Health have rallied 45.6% compared with the industry's 36.5% rise. The current level is also higher than the S&P 500 index's increase of 17.9%.
The Zacks Rank #2 (Buy) stock currently 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.
What Makes the Stock an Attractive Pick?
PRA Health raised its 2018 revenue guidance to the range of $2.87-$2.92 billion from $2.84-$2.95 billion stated previously.
Adjusted earnings per diluted share are expected between $4.13 and $4.23 compared with the previously provided range of $4 to $4.15.
PRA Health has a strong international presence.
The company's global clinical development platform includes establishments across North America, Europe, Asia, Latin America, South Africa, Australia and the Middle East. Within the company's Early Development Services, the company has so far conducted studies for major pharmaceutical companies outside the nation, especially in Europe and Japan.
CRO Market Bullish
North Carolina-based PRA Health is a renowned Contract Research Organization (CRO), which provides outsourced clinical development services to biotechnology and pharmaceutical industries. With worldwide increase in demand for outsourced clinical development solutions, the industry is currently under limelight and gaining traction.
Per a study by Grand View Research, the healthcare CRO market is expected to reach $51.3 billion by 2024.
We expect such trends to favor the company in the long run.
Which Way Are Estimates Treading?
For the current quarter, the Zacks Consensus Estimate for earnings is pegged at $1.08 showing a year-over-year growth of 22.7%. The same for revenues is pinned at $731.2 million, reflecting an increase of 25.6% year over year.
PRA Health Sciences, Inc. Price and Consensus
PRA Health Sciences, Inc. Price and Consensus | PRA Health Sciences, Inc. Quote
For the current year, the Zacks Consensus Estimate for earnings stands at $4.19, showing growth of 25.8% from the previous year. The same for revenues is pegged at $2.91 billion, indicating an improvement of 43.1% from the prior year.
Other Key Picks
Other top-ranked stocks in the broader medical space are athenahealth ATHN , Masimo Corporation MASI and Veeva Systems VEEV .
athenahealth has a long-term expected earnings growth rate of 17.6%. The stock sports a Zacks Rank #1. You can see the complete list of today's Zacks #1 Rank stocks here .
Masimo's long-term earnings growth rate is projected at 14.8%. The stock carries a Zacks Rank #2.
Veeva Systems' long-term earnings growth rate is estimated at 19.3%. The stock carries a Zacks Rank #1.
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Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Veeva Systems Inc. (VEEV): Free Stock Analysis Report athenahealth, Inc. (ATHN): Free Stock Analysis Report Masimo Corporation (MASI): Free Stock Analysis Report PRA Health Sciences, Inc. (PRAH): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research