Is Omnicell Stock a Solid Pick for Your Portfolio Right Now?

Omnicell OMCL is advancing toward the industry-defined vision of Autonomous Pharmacy by leveraging automation and advanced services across its cloud-based platform. The strength of the company’s Advanced Services offerings is highly encouraging to sustain growth in the upcoming quarters. Efforts to expand into more overseas markets instill optimism. However, adverse macroeconomic challenges and fierce rival pressure could hurt Omnicell’s performance.Currently sporting a Zacks Rank #1 (Strong Buy), OMCL stock has delivered an impressive performance in the past year. Shares of the company have risen 39.4% against the industry's 4.2% fall and the S&P 500 composite’s 24.5% increase.The renowned healthcare technology company has a market capitalization of $2.07 billion. Omnicell surpassed estimates in each of the trailing four quarters, delivering an average earnings surprise of 121.74%.Tailwinds for OMCL StockRobust Pipeline for Advanced Services Portfolio: Omnicell’s suite of Advanced Services is a key part of the company’s medication management infrastructure to help drive improved clinical, operational and financial outcomes across all care settings. In recent years, Omnicell has made key acquisitions such as Specialty Pharmacy Services (formerly ReCept), FDS Amplicare and MarkeTouch Media, LL, to broaden its advanced services offerings. In the third quarter of 2024, the company introduced Central Med Automation Service, a subscription-based solution designed to help health systems establish and continuously optimize centralized medication management for consolidated pharmacy services centers (CPSCs) and similar operations.Image Source: Zacks Investment ResearchThe EnlivenHealth brand is also gaining momentum with cross-selling and upselling communication solutions to existing customers. Further, Central Pharmacy Dispensing Services continue to gain market traction. Omnicell also offers 340B solutions related to the federal 340B Drug Pricing Program. By combining its 340B TPA (third-party administrator) services with Specialty Pharmacy Services, the company is creating growth opportunities for its customers.Autonomous Pharmacy Model Holds Potential: The industry-defined vision of Autonomous pharmacy is a roadmap to improving operational efficiencies and ultimately targeting zero-error medication management. In this regard, Omnicell’s medication management infrastructure delivers automation, intelligence and advanced services through a single, cloud-based platform to increase healthcare value and improve patient outcomes. The company is investing in R&D efforts to help drive positive medication management outcomes while ensuring an exceptional customer experience through a mature channel in four market categories.Within the Point of Care product market, Omnicell expects expansion as customers increase the use of its dispensing systems in more areas within their hospitals and ambulatory care settings. The Central Pharmacy and IV Compounding market offers significant automation opportunities for high volumes of manual, repetitive and error-prone processes that are often common in many of the pharmacies presently. In addition, Omnicell sees a vast opportunity in the Retail, Institutional and Payer markets as the healthcare landscape evolves.Planned Geographic Expansion Another Upside: Outside the United States, healthcare providers are becoming increasingly aware of the benefits of automation. There is a substantial demand for adherence packaging equipment outside the domestic market. Many government and private entities are aware of the progress made over the last several years in the United States and are investing significantly in information technology and automation. Given the fact that the international market is less than 1% penetrated, with very few hospitals adopting medication control systems, Omnicell intends to expand into new markets, which it views as strategic.Concerns for OMCL StockMacroeconomic Challenges: The broader U.S. and global economies are facing elevated inflationary pressures, continued supply-chain disruptions, labor shortages and geopolitical instability, leading to higher costs for the company’s raw materials and other components. Simultaneously, the company is navigating the ongoing healthcare system capital budget and labor constraints, which have continued to impact its Point-of-Care product line. In the third quarter of 2024, Omnicell registered a 16.1% year-over-year decrease in product revenues due to the challenging environment for some of the health system customers.Competitive Landscape: Omnicell faces intense competition in the medication management and supply-chain solutions market. Even though the company continues to gain market share from other traditional providers of medication management and supply-chain solutions, major players still pose threats as they spearhead several expansion programs. This increased competition could result in pricing pressure and a reduced margin, negatively affecting the company’s performance.OMCL Estimate TrendThe Zacks Consensus Estimate for OMCL’s 2024 earnings per share has remained constant at $1.68 in the past 30 days. The Zacks Consensus Estimate for the company’s 2024 revenues is pegged at $1.10 billion. This suggests a 3.9% fall from the year-ago reported number.Other Key PicksSome other top-ranked stocks in the broader medical space are Haemonetics HAE, Insulet PODD and Phibro Animal Health PAHC.Haemonetics has an earnings yield of 5.41% compared with the industry’s 1.75%. Haemonetics’ earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters and missed on one occasion, the average surprise being 2.82%. Its shares have fallen 10.9% against the industry’s 14.8% growth in the past year.HAE carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.Insulet, carrying a Zacks Rank #2 at present, has a long-term estimated earnings growth rate of 20.3%. Shares of the company have rallied 43.3% compared with the industry’s 14.7% growth. PODD’s earnings surpassed estimates in three of the trailing four quarters and missed on one occasion, the average surprise being 52.4%.Phibro Animal Health, carrying a Zacks Rank #2 at present, has an estimated earnings growth rate of 35.3% for fiscal 2025 compared with the industry’s 11.1%. Shares of the company have surged 100.9% compared with the industry’s 14.7% growth over the past year. PAHC’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 25.47%.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is among the most innovative financial firms. With a fast-growing customer base (already 50+ million) and a diverse set of cutting edge solutions, this stock is poised for big gains. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant 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 Omnicell, Inc. (OMCL): Free Stock Analysis Report Haemonetics Corporation (HAE): Free Stock Analysis Report Insulet Corporation (PODD): Free Stock Analysis Report Phibro Animal Health Corporation (PAHC): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks