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Here’s Why You Should Invest in BioScrip (BIOS) Right Now


BioScrip, Inc. BIOS has been gaining investors’ confidence on consistently positive results. Over the past three months, the company’s stock has outperformed its industry. The stock has gained 23.8%, compared with the industry’s 11%. The company has also outperformed the 5.5% gain of the S&P 500 market as well.

This leading pure-play Infusion Service provider has a market cap of $400.49 million.

With solid prospects, this Zacks Rank #2 (Buy) stock is an attractive pick for investors at the moment.

The company’s earnings estimate revision trend for the current year has been positive. In the past 60 days, one analyst revised estimates upward, with no movement in the opposite direction. Resultantly, estimates for loss per share have narrowed from 32 cents to 31 cents.

Per our Zacks Style Score system, BioScrip has a Growth Score of A which reflects the company’s solid prospects. Our research shows that stocks with a Growth Style Score of A or B when combined with a Zacks Rank #1 (Strong Buy) or 2 offer the best upside potential.

Let’s find out whether the recent positive trend is a sustainable one.

CORE Turnaround Plan Bodes Well

We are upbeat about BioScrip’s (BIOS) progress in the last reported quarter, courtesy of its multi-faceted CORE plan to improve financial position. The company launched the CORE initiative in 2016.

The plan represents focus on identifying and executing strategies to accelerate BioScrip's core revenue growth, mix, drive operational efficiency, improve revenue collections and increase employee effectiveness throughout the organization.

At the end of the first quarter, the company announced that it is on track to achieve its goal of 85% core revenue mix (registering 75.4% core mix in the quarter).

Growing Infusion Services

BioScrip has been recording consistent growth in its core Infusion Services business where it enjoys competitive advantage. The solid growth in this business has been primarily on account of strong organic growth particularly in chronic, nutrition and other therapies.

In order to boost its Infusion services business, BioScrip has taken a number of steps. These includedthe sale of its legacy specialty and mail service pharmacies; the sale of its home health services business and the divestment of the PBM business.

Efforts to Expand Business Look Impressive

With the healthcare landscape changing rapidly, BioScrip has been focused in recent years on growing its core Infusion Services platform through a clinically-focused and customer-orientated model.

While the company’s focus is on driving growth in core Infusion Services, it is also engaged in aggressive reduction of cost. Currently, the company aims at emerging as a smaller and more focused organization with significantly improved profitability and improved operating cash flow.

Other Key Picks

Some other top-ranked stocks in the broader medical space are Genomic Health GHDX, Align Technology, Inc. ALGN and Stryker Corporation SYK.

Genomic Health has an expected earnings growth rate of 187.5% for the current quarter. The stock sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Align Technology has a projected long-term earnings growth rate of 28.4% and a Zacks Rank of 2.

Stryker has a projected long-term earnings growth rate of 9.7%. The stock carries a Zacks Rank of 2.

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