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Reasons to Retain QIAGEN Stock in Your Portfolio for Now
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QIAGEN N.V.’s (QGEN - Free Report) growth in the third quarter of 2024 was driven by its Diagnostic Solutions product group’s strong performance, reflecting solid gains within consumables including QuantiFERON and QIAstat-Dx. The company’s strategic alliances with researchers and pharma companies bolster its top line.
Meanwhile, QIAGEN’s operations are vulnerable to a dull macroeconomic environment, which can adversely impact its financial results. Currency fluctuations add to the worry.
In the past year, this Zacks Rank #3 (Hold) stock has risen 1% compared with 0.5% growth of the industry. The S&P 500 composite has witnessed a 30% rise in the time frame.
The renowned global provider of sample and assay technologies has a market capitalization of $9.35 billion. QGEN’s earnings surpassed estimates in three of the trailing four quarters and missed the same in one, delivering an average surprise of 3.52%.
Let’s delve deeper.
QIAGEN’s Key Tailwinds
Huge Potential in Molecular Diagnostics: Molecular testing is the most dynamic segment of the global in vitro diagnostics market. QIAGEN offers one of the broadest portfolios of molecular technologies for healthcare. The range of assays for diseases and biomarkers speeds up and simplifies laboratory workflow and standardizes many lab procedures. QGEN has more than 30 master collaboration agreements with pharmaceutical industry customers, some with multiple co-development projects. The company recently launched the PAXgene Urine Liquid Biopsy kit to address critical needs in collecting, processing and storing DNA from urine samples for analysis.
In the third quarter of 2024, sales in the Diagnostic Solutions product group grew 10% from the year-ago period. The QuantiFERON test delivered its sixth consecutive quarter of sales above $100 million, supported by solid demand in all regions from conversion gains against the tuberculin skin test. QIAstat-Dx testing system grew 41%, consistently gaining from consumables and a good level of instrument placement.
Strategic Collaborations to Drive Growth: QIAGEN’s long-term business strategy involves entering into strategic alliances as well as marketing and distribution arrangements with academic, corporate and other partners relating to the development, commercialization, marketing and distribution of certain of their existing and potential products. In September 2024, the company announced a collaboration with Eli Lilly and Company to support the development of a QIAstat-Dx in-vitro diagnostic (IVD) to detect APOE genotypes, which can play a key role in Alzheimer’s disease diagnosis. Also, QIAGEN has named Bode Technology its exclusive global commercial partner for the GEDmatch PRO genealogy database, used to assist police and forensic teams with investigative comparisons of genetic data.
The company also extended its partnership with Bio-Manguinhos/Fiocruz and AstraZeneca.
QIAGEN’s Key Headwinds
Macro Headwinds Hamper Global Sales: QIAGEN currently markets products in more than 100 countries. In many of the emerging markets, QIAGEN faces several risks, including economies that may be dependent on only a few products and are, therefore, subject to significant fluctuations, weak legal systems, exchange controls, unstable governments and privatization or other government actions affecting the flow of goods and currency. In the quarter under review, sales in the Asia Pacific, Japan and the Rest of World region declined 2% year over year, reflecting challenging macro demand trends in China.
Image Source: Zacks Investment Research
Foreign Exchange Uncertainties: Recording more than 50% of its revenues from the international market, QIAGEN is highly exposed to the risk of foreign currency movement. The situation may worsen with the strengthening of the domestic currency against high-focus nations. For instance, foreign currency transactions in the third quarter of 2024 resulted in net losses of $1.1 million.
QIAGEN’s Estimate Trend
The Zacks Consensus Estimate for 2024 earnings per share has increased 0.9% to $2.17 in the past 30 days.
The consensus estimate for the company’s 2024 revenues is pegged at $1.98 billion, indicating a 0.5% increase from the year-ago reported number.
Haemonetics has an earnings yield of 5.02% compared with the industry’s 1.18%. Its earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 19.39%. Its shares have risen 3.6% compared with the industry’s 19.9% growth in the past year.
Globus Medical, carrying a Zacks Rank #2 at present, has a long-term estimated growth rate of 14.1%. Shares of the company have rallied 81.8% compared with the industry’s 14.5% growth. GMED’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 17.65%.
Penumbra, carrying a Zacks Rank #2 at present, has an estimated 2024 earnings growth rate of 33.5% compared with the industry’s 15.9%. Shares of Penumbra have risen 3.2% compared with the industry’s 14.5% growth over the past year. PEN’s earnings surpassed estimates in three of the trailing four quarters and missed in one, with the average surprise being 10.54%.
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Reasons to Retain QIAGEN Stock in Your Portfolio for Now
QIAGEN N.V.’s (QGEN - Free Report) growth in the third quarter of 2024 was driven by its Diagnostic Solutions product group’s strong performance, reflecting solid gains within consumables including QuantiFERON and QIAstat-Dx. The company’s strategic alliances with researchers and pharma companies bolster its top line.
Meanwhile, QIAGEN’s operations are vulnerable to a dull macroeconomic environment, which can adversely impact its financial results. Currency fluctuations add to the worry.
In the past year, this Zacks Rank #3 (Hold) stock has risen 1% compared with 0.5% growth of the industry. The S&P 500 composite has witnessed a 30% rise in the time frame.
The renowned global provider of sample and assay technologies has a market capitalization of $9.35 billion. QGEN’s earnings surpassed estimates in three of the trailing four quarters and missed the same in one, delivering an average surprise of 3.52%.
Let’s delve deeper.
QIAGEN’s Key Tailwinds
Huge Potential in Molecular Diagnostics: Molecular testing is the most dynamic segment of the global in vitro diagnostics market. QIAGEN offers one of the broadest portfolios of molecular technologies for healthcare. The range of assays for diseases and biomarkers speeds up and simplifies laboratory workflow and standardizes many lab procedures. QGEN has more than 30 master collaboration agreements with pharmaceutical industry customers, some with multiple co-development projects. The company recently launched the PAXgene Urine Liquid Biopsy kit to address critical needs in collecting, processing and storing DNA from urine samples for analysis.
In the third quarter of 2024, sales in the Diagnostic Solutions product group grew 10% from the year-ago period. The QuantiFERON test delivered its sixth consecutive quarter of sales above $100 million, supported by solid demand in all regions from conversion gains against the tuberculin skin test. QIAstat-Dx testing system grew 41%, consistently gaining from consumables and a good level of instrument placement.
Strategic Collaborations to Drive Growth: QIAGEN’s long-term business strategy involves entering into strategic alliances as well as marketing and distribution arrangements with academic, corporate and other partners relating to the development, commercialization, marketing and distribution of certain of their existing and potential products. In September 2024, the company announced a collaboration with Eli Lilly and Company to support the development of a QIAstat-Dx in-vitro diagnostic (IVD) to detect APOE genotypes, which can play a key role in Alzheimer’s disease diagnosis. Also, QIAGEN has named Bode Technology its exclusive global commercial partner for the GEDmatch PRO genealogy database, used to assist police and forensic teams with investigative comparisons of genetic data.
The company also extended its partnership with Bio-Manguinhos/Fiocruz and AstraZeneca.
QIAGEN’s Key Headwinds
Macro Headwinds Hamper Global Sales: QIAGEN currently markets products in more than 100 countries. In many of the emerging markets, QIAGEN faces several risks, including economies that may be dependent on only a few products and are, therefore, subject to significant fluctuations, weak legal systems, exchange controls, unstable governments and privatization or other government actions affecting the flow of goods and currency. In the quarter under review, sales in the Asia Pacific, Japan and the Rest of World region declined 2% year over year, reflecting challenging macro demand trends in China.
Image Source: Zacks Investment Research
Foreign Exchange Uncertainties: Recording more than 50% of its revenues from the international market, QIAGEN is highly exposed to the risk of foreign currency movement. The situation may worsen with the strengthening of the domestic currency against high-focus nations. For instance, foreign currency transactions in the third quarter of 2024 resulted in net losses of $1.1 million.
QIAGEN’s Estimate Trend
The Zacks Consensus Estimate for 2024 earnings per share has increased 0.9% to $2.17 in the past 30 days.
The consensus estimate for the company’s 2024 revenues is pegged at $1.98 billion, indicating a 0.5% increase from the year-ago reported number.
Key Picks
Some better-ranked stocks in the broader medical space are Haemonetics (HAE - Free Report) , Globus Medical (GMED - Free Report) and Penumbra (PEN - Free Report) .
Haemonetics has an earnings yield of 5.02% compared with the industry’s 1.18%. Its earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 19.39%. Its shares have risen 3.6% compared with the industry’s 19.9% 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 (Strong Buy) stocks here.
Globus Medical, carrying a Zacks Rank #2 at present, has a long-term estimated growth rate of 14.1%. Shares of the company have rallied 81.8% compared with the industry’s 14.5% growth. GMED’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 17.65%.
Penumbra, carrying a Zacks Rank #2 at present, has an estimated 2024 earnings growth rate of 33.5% compared with the industry’s 15.9%. Shares of Penumbra have risen 3.2% compared with the industry’s 14.5% growth over the past year. PEN’s earnings surpassed estimates in three of the trailing four quarters and missed in one, with the average surprise being 10.54%.