Why Omnicell Shares Soared

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Omnicell (NASDAQ: OMCL  ) , an automated medication and supply management solutions provider to the health care industry, popped as much as 13% after reporting its fourth-quarter earnings results.

So what: For the quarter, Omnicell recorded a whopping 43% increase in revenue to $90.2 million and adjusted earnings of $0.25. Although EPS was in line with expectations, sales came in $3.1 million higher than Wall Street had expected. Omnicell's management attributed record revenue and bookings in its acute care segment for its record year and is looking forward to further utilizing its acquisition of MTS Medication Technologies last year to fuel growth in 2013.

Now what: This isn't rocket science; Omnicell is in the right business at the right time. Health records and almost all things health care are being moved online and digitization of medications and product supply management is a mandate. Even after today's pop, at just 14 times forward earnings Omnicell could represent quite a bargain, and I'd suggest keeping it high up on your watchlist.

Craving more input? Start by adding Omnicell to your free and personalized watchlist so you can keep up on the latest news with the company.

While you can certainly make huge gains in biotech and pharmaceuticals, the best investing approach is to choose great companies and stick with them for the long term. In our free report "3 Stocks That Will Help You Retire Rich," we name stocks that could help you build long-term wealth and retire well, along with some winning wealth-building strategies that every investor should be aware of. Click here now to keep reading.

Read/Post Comments (0) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

DocumentId: 2231358, ~/Articles/ArticleHandler.aspx, 7/24/2014 11:47:20 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

TREND TRACKER: Get Rich When the Web Goes Dark

It's time to say "goodbye" to your Internet! One bleeding-edge technology is about to put the World Wide Web to bed. And if you act right away, it could make you wildly rich. Experts are calling it the single largest business opportunity in the history of capitalism… The Economist is calling it "transformative"... but you'll probably just call it "how I made my millions." Big money is already on the move. Don't be too late to the party – find out the 1 stock to own when the Web goes dark.