Credit: Shutterstock photoathenahealth, Inc.ATHN is currently one of the top performing stocks in the MedTech space. The company's focus on big-data and a raised guidance for 2018 makes it a lucrative investment pick.
Shares Up
Year to date, shares of athenahealth have rallied 14.4% compared with the industry 's 11.9% rise. The current level is also higher than the S&P 500 index's return of 8.8%.
This Zacks Rank #1 (Strong 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 or 2 (Buy), are better picks than most.
Which Way Are Estimates Treading?
For the current quarter, the Zacks Consensus Estimate for earnings per share is pegged at 98 cents, reflecting year-over-year growth of 75%. The same for revenues stands at $336.4 million, showing growth of 10.4% year over year.
For the current year, the Zacks Consensus Estimate for earnings per share is pinned at $4.17, showing growth of 68.2% over the last year. The same for revenues stands at $1.35 billion, showing growth of 10.4% from last year.
athenahealth, Inc. Price and Consensus
athenahealth, Inc. Price and Consensus | athenahealth, Inc. Quote
Let's delve deeper.
Factors That Make It an Attractive Pick
Focus on Cloud-Based Services
athenahealth is a key player in the HCIT (Healthcare IT) space. The company's cloud-based big data network - athenaNet - deserves a special mention here. Per management, there are nearly 116,000 providers on athenaNet currently.
Other notable platforms include athenaClinicals, the company's first economically sustainable, service-based electronic medical records (EMR) system and athenaCollector. In the last reported quarter, the number of athenaCollector providers increased 15% year over year.
Guidance Raised
For 2018, athenahealth expects revenues in the range of $1.34-$1.37 billion, up from the previous guidance of $1.31-$1.38 billion.
The company expects adjusted operating income in the range of $244-$270 million, up from previous guidance of $210-$235 million.
Adjusted operating margin is expected in the band of 18.3-19.8% of net revenues for 2018, up from the previous guidance of 16-17%.
Other Key Picks
Some other top-ranked stocks in the broader medical space are Intuitive Surgical ISRG , Integer Holdings Corporation ITGR and Masimo Corporation MASI .
Intuitive Surgical's expected long-term earnings growth rate is 14.7%. The stock sports a Zacks Rank #1. You can see the complete list of today's Zacks #1 Rank stocks here .
Integer Holdings has an expected growth rate of 12.6% for the next year. The stock carries a Zacks Rank #2.
Masimo's long-term earnings growth rate is projected at 14.8%. The stock carries a Zacks Rank #2.
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athenahealth, Inc. (ATHN): Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
