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OPKO Health (OPK) Launches Prenatal Testing Tool ClariTest
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Diversified healthcare company, OPKO Health Inc. (OPK - Free Report) recently announced the launch of a non-invasive medical test to detect fetal abnormalities. The test can detect abnormalities as early as 10 weeks during a pregnancy.
A glimpse of the company’s price trend reveals that the stock has had an unimpressive run on the bourse year to date. OPKO Health registered a negative return of almost 16.34% versus the 7.12% approximate positive return of the Zacks categorized Medical Instruments sub-industry.
Along with the bearish price trend, estimate revision for the stock has been dismal. Two estimates for the full year declined in the last seven days, with one moving in the opposite direction. As a result, the Zacks Consensus Estimate for the full year currently stands at a loss of 14 cents. Notably, the stock has a Zacks Rank #3 (Hold).
Coming back to the news, the newly launched prenatal test is christened ClariTest. It was developed in an in-house lab based in New Jersey. The test, as per the company, registered one of the lowest failure rates among similar screening tools in the market. It also reduces the need for more invasive testing methods which carry risks like pregnancy loss.
Our Take
According to management, with prenatal testing emerging as a rapidly evolving area of medicine, such new product launches will augment the company’s revenue stream. Moreover, per the research firm Research and Markets, the global prenatal testing market is growing at a CAGR of 28.85% from 2016 to 2022 and is estimated to grow over $7.2 billion by 2022. Thus we believe that the company is moving in the right direction to extract higher profits from its testing business. Additionally, OPKO Health’s long-term growth fundamentals are strong. The company recorded a five-year CAGR of 319.2% for revenues.
OPKO Health is a medical company focused on diagnostics and pharmaceuticals. It develops treatments for secondary hyperparathyroidism. The company operates in the U.S., Chile, Israel, Mexico, Uruguay and Spain. Its diagnostics business consists of Bio-Reference Laboratories, which is the nation's third-largest clinical laboratory with a core genetic testing business and a 420-person sales force.
IDEXX Laboratories has a long-term expected earnings growth rate of approximately 15.04%. Notably, the stock represents an impressive one-year return of 90.6%.
Avinger projects sales growth of 30.7% for the current year. Additionally, the company posted a positive earnings surprise of 27% last quarter.
Fluidigm has a long-term expected earnings growth rate of 25%. The company also posted a positive earnings surprise of 1.6% last quarter.
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OPKO Health (OPK) Launches Prenatal Testing Tool ClariTest
Diversified healthcare company, OPKO Health Inc. (OPK - Free Report) recently announced the launch of a non-invasive medical test to detect fetal abnormalities. The test can detect abnormalities as early as 10 weeks during a pregnancy.
A glimpse of the company’s price trend reveals that the stock has had an unimpressive run on the bourse year to date. OPKO Health registered a negative return of almost 16.34% versus the 7.12% approximate positive return of the Zacks categorized Medical Instruments sub-industry.
Along with the bearish price trend, estimate revision for the stock has been dismal. Two estimates for the full year declined in the last seven days, with one moving in the opposite direction. As a result, the Zacks Consensus Estimate for the full year currently stands at a loss of 14 cents. Notably, the stock has a Zacks Rank #3 (Hold).
Coming back to the news, the newly launched prenatal test is christened ClariTest. It was developed in an in-house lab based in New Jersey. The test, as per the company, registered one of the lowest failure rates among similar screening tools in the market. It also reduces the need for more invasive testing methods which carry risks like pregnancy loss.
Our Take
According to management, with prenatal testing emerging as a rapidly evolving area of medicine, such new product launches will augment the company’s revenue stream. Moreover, per the research firm Research and Markets, the global prenatal testing market is growing at a CAGR of 28.85% from 2016 to 2022 and is estimated to grow over $7.2 billion by 2022. Thus we believe that the company is moving in the right direction to extract higher profits from its testing business. Additionally, OPKO Health’s long-term growth fundamentals are strong. The company recorded a five-year CAGR of 319.2% for revenues.
OPKO Health is a medical company focused on diagnostics and pharmaceuticals. It develops treatments for secondary hyperparathyroidism. The company operates in the U.S., Chile, Israel, Mexico, Uruguay and Spain. Its diagnostics business consists of Bio-Reference Laboratories, which is the nation's third-largest clinical laboratory with a core genetic testing business and a 420-person sales force.
Stocks to Consider
Better-ranked stocks in the broader medical sector include IDEXX Laboratories, Inc. (IDXX - Free Report) , Avinger, Inc. (AVGR - Free Report) and Fluidigm Corp. . All the three stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
IDEXX Laboratories has a long-term expected earnings growth rate of approximately 15.04%. Notably, the stock represents an impressive one-year return of 90.6%.
Avinger projects sales growth of 30.7% for the current year. Additionally, the company posted a positive earnings surprise of 27% last quarter.
Fluidigm has a long-term expected earnings growth rate of 25%. The company also posted a positive earnings surprise of 1.6% last quarter.
8 Stocks with Huge Profit Potential
Just released: Driverless Cars: Your Roadmap to Mega-Profits Today. In this latest Special Report, Zacks’ Aggressive Growth Strategist Brian Bolan explores a full-blown technological breakthrough in the making – autonomous cars. He also spotlights 8 stocks with tremendous gain potential to feed off this phenomenon. Click to see the stocks right now >>