Below are the top 5 companies in the Health Care Technology industry ranked by the year-over-year expected EPS growth rate. The long-term growth rate is the expected annual increase in operating EPS over the next three to five years.
Omnicell (NASDAQ:OMCL) EPS is expected to grow 266.7% year-over-year, better than the company's long-term growth rate of 23.3%. Based on the forward P/E of 29x its PEG ratio is 1.25, which signifies a premium valuation given for growth.
Eclipsys (NASDAQ:ECLP) EPS is expected to grow 94.3% year-over-year, better than the company's long-term growth rate of 18.2%. Based on the forward P/E of 26.4x its PEG ratio is 1.44, which signifies a premium valuation given for growth.
Phase Forward (NASDAQ:PFWD) EPS is expected to grow 70% year-over-year, better than the company's long-term growth rate of 19%. Based on the forward P/E of 28.8x its PEG ratio is 1.51, which signifies a premium valuation given for growth.
Cerner (NASDAQ:CERN) EPS is expected to grow 29.8% year-over-year, better than the company's long-term growth rate of 18.1%. Based on the forward P/E of 25.8x its PEG ratio is 1.42, which signifies a premium valuation given for growth.
athenahealth (NASDAQ:ATHN) EPS is expected to grow 27.5% year-over-year, worse than the company's long-term growth rate of 38%. Based on the forward P/E of 45.6x its PEG ratio is 1.2, which signifies a premium valuation given for growth.
SmarTrend is bearish on shares of ATHN and our subscribers were alerted to Sell on February 26, 2010 at $37.75. The stock has fallen 39.8% since the alert was issued.