NextGen Healthcare, Inc. NXGN is well-poised for growth backed by strong demand for its solutions and strength in electronic health records (EHR). However, stiff competition remains a concern.Shares of this Zacks Rank #3 (Hold) company have lost 1.8% compared with the industry’s decline of 38.2% in a year’s time. The S&P 500 Index has rallied 29.7% in the same time frame.NextGen — with a market capitalization of $1.22 billion — is a developer and marketer of healthcare information systems. It anticipates earnings to improve 8.5% over the next five years. The company has a trailing four-quarter earnings surprise of 16%, on average.Key CatalystsNextGen continues to benefit from strong demand for its solutions.In November, Eye Center South started utilizing NextGen Mobile to improve practice efficiency and bolster patient volume and access. In October, Community Health Center of Snohomish County (CHC of Snohomish County), a federally qualified health center (FQHC) in Washington state, adopted the company’s full solution suite including NextGen Enterprise EHR and NextGen Enterprise PM as well as NextGen Population Health and NextGen Patient Experience Platform.In the same month, NextGen’s client Mednax, Inc. expanded its use of NextGen’s integrated platform. Mednax has adopted NextGen Virtual Visits to see and treat patients remotely and NextGen Mobile, which allows its providers to access schedules and records, streamline clinical documentation and collaborate with other care team members all from a smartphone.Image Source: Zacks Investment ResearchStrong prospects in EHR remain a tailwind. For instance, in October, the company collaborated with Validic to incorporate real-time remote patient monitoring (RPM) into its NextGen Virtual Visits telehealth solution. NextGen Virtual Visits are seamlessly integrated into NextGen Enterprise EHR.In September, NextGen collaborated with Klamath Tribal Health (“Klamath”) in Oregon in a bid to help in the extensive delivery of COVID-19 vaccinations to its community. By integrating NextGen’s technology with its own EHR workflow, Klamath has been able to inoculate patients in mobile clinics, which has allowed it to administer thousands of vaccines at remote sites since last December.Factor Hurting the StockThe healthcare information technology (HCIT) market is highly competitive. The industry is also exceedingly fragmented and includes numerous players. We harbor doubts regarding the company’s ability to penetrate the EHR market where it faces competition from low-priced cloud-based EHR models.Estimates TrendNextGen has been witnessing an upward estimate revision trend for fiscal 2022. In the past 90 days, the Zacks Consensus Estimate for its earnings has moved north by 1.1% to 95 cents.The Zacks Consensus Estimate for fiscal third-quarter 2022 revenues is pegged at $146.1 million, suggesting growth of 3.1% from the year-ago reported number.Stocks to ConsiderSome better-ranked stocks in the broader medical space include Thermo Fisher Scientific Inc. TMO, McKesson Corporation MCK and Laboratory Corporation of America Holdings LH.Thermo Fisher surpassed earnings estimates in each of the trailing four quarters, the average surprise being 9.02%. The company currently carries a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Thermo Fisher’s long-term earnings growth rate is estimated at 14%. The company’s earnings yield of 3.7% compares favorably with the industry’s (3.6%).McKesson beat earnings estimates in each of the trailing four quarters, the average surprise being 19.9%. The company currently carries a Zacks Rank #2.McKesson’s long-term earnings growth rate is estimated at 8.9%. The company’s earnings yield of 9.9% compares favorably with the industry’s 3.2%.Laboratory Corporation surpassed earnings estimates in each of the trailing four quarters, the average surprise being 25.7%. The company currently carries a Zacks Rank #2.Laboratory Corporation’s long-term earnings growth rate is estimated at 10.6%. The company’s earnings yield of 9.4% compares favorably with the industry’s 3.4%. Zacks Top 10 Stocks for 2022 In addition to the investment ideas discussed above, would you like to know about our 10 top picks for the entirety of 2022? From inception in 2012 through November, the Zacks Top 10 Stocks gained an impressive +962.5% versus the S&P 500’s +329.4%. Now our Director of Research is combing through 4,000 companies covered by the Zacks Rank to handpick the best 10 tickers to buy and hold. Don’t miss your chance to get in on these stocks when they’re released on January 3.Be First To New Top 10 Stocks >>Want 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 Laboratory Corporation of America Holdings (LH): Free Stock Analysis Report Thermo Fisher Scientific Inc. (TMO): Free Stock Analysis Report McKesson Corporation (MCK): Free Stock Analysis Report NEXTGEN HEALTHCARE, INC (NXGN): Free Stock Analysis Report To read this article on Zacks.com click here.