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Here's Why You Should Add QIAGEN (QGEN) to Your Portfolio
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QIAGEN N.V. (QGEN - Free Report) has been gaining on robust segmental growth. Its international performance has also been impressive. Strong revenues in the second quarter of 2020 buoy optimism. However, downsides may result from its reliance on commercial relationships and a stiff competitive landscape.
Over the past year, the Zacks Rank #1 (Strong Buy) stock has outperformed its industry. The stock has gained 42.3% compared with 11.9% growth of the industry and 15.7% rise of the S&P 500.
The renowned molecular diagnostics solutions provider has a market capitalization of $10.89 billion. The company projects 22.3% growth for the next five years and expects to maintain strong segmental performance. The company surpassed estimates in three of the trailing four quarters and missed estimates in one, the average surprise being 2.27%.
Let’s delve deeper.
Impressive Q2 Results: QIAGEN’s robust top line in the second quarter of 2020 instills optimism. Its revenue growth across majority of its geographies and both operating segments in the second quarter is impressive. Robust instrument sales were registered for QIAsymphony and QIAcube line of sample processing instruments. Sales of consumables and related revenues remained robust, mainly due to strength in demand for products used in coronavirus testing. Expansion of both margins is encouraging as well.
Responding to the coronavirus pandemic, it scaled up RNA extraction kit and instrument production and launched QIAstat-Dx Respiratory SARS-CoV-2 Panel to speed up virus detection.
Product Launches: We are upbeat about QIAGEN’s recent product launches. The company has planned the U.S. launch of its antibody test, Access Anti-SARS-CoV-2 Total test, in late August. The company has submitted this test for an Emergency Use Authorization to the FDA. In May, the company launched novel solutions to enable faster and better analysis of genomic variations in cancer.
In April, QIAGEN launched its therascreen BRAF V600E RGQ Polymerase Chain Reaction (PCR) Kit (therascreen BRAF V600E) as a companion diagnostic to the BRAF inhibitor, BRAFTOVI (encorafenib) post its FDA clearance.
Huge Potential in Molecular Diagnostics: We are optimistic about the strong performance of QIAGEN’s molecular diagnostic portfolio. The company registered strong sales growth of the QIAsymphony automation system, the QIAcube Connect sample processing instrument and the QIAstat-Dx syndromic testing instrument in the second quarter of 2020.
Notably, despite a decline in QuantiFERON latent tuberculosis test sales during the second quarter of 2020, the company registered solid sales gain at constant exchange rate. The QuantiFERON-TB Gold Plus (QFT-Plus) has been adopted by Nigeria to prevent the spread of tuberculosis. Further, QuantiFERON Access is expected to be launched near the end of 2020 as a CE-IVD solution, thus contributing to the company’s QuantiFERON-TB's momentum.
However, downsides might result from the company’s reliance on commercial relationships. The future level of sales for companion diagnostics depends to a high degree on the commercial success of the related medicines for which the tests have been designed. Further, risks remain that it may be unable to maintain these relationships and its collaborative partners may pursue or develop competing products or technologies, either on their own or in collaboration with others.
QIAGEN is facing intensifying competition from firms providing pre-analytical solutions and other products used by QIAGEN’s customers. The markets for some of the company’s products are very competitive and price sensitive as well.
Estimate Trend
QIAGEN has been witnessing an upward estimate revision trend for 2020. Over the past 90 days, the Zacks Consensus Estimate for its earnings has moved 23.8% north to $2.08.
The Zacks Consensus Estimate for third-quarter 2020 revenues is pegged at $455.7 million, suggesting a 19.1% rise from the year-ago reported number.
Other Key Picks
Other top-ranked stocks from the broader medical space include Hologic, Inc. (HOLX - Free Report) , Thermo Fisher Scientific Inc. (TMO - Free Report) and Globus Medical, Inc. (GMED - Free Report) .
Thermo Fisher’s long-term earnings growth rate is estimated at 15%. It currently carries a Zacks Rank #2 (Buy).
Globus Medical’s long-term earnings growth rate is estimated at 13%. The company presently carries a Zacks Rank #2.
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
Image: Bigstock
Here's Why You Should Add QIAGEN (QGEN) to Your Portfolio
QIAGEN N.V. (QGEN - Free Report) has been gaining on robust segmental growth. Its international performance has also been impressive. Strong revenues in the second quarter of 2020 buoy optimism. However, downsides may result from its reliance on commercial relationships and a stiff competitive landscape.
Over the past year, the Zacks Rank #1 (Strong Buy) stock has outperformed its industry. The stock has gained 42.3% compared with 11.9% growth of the industry and 15.7% rise of the S&P 500.
The renowned molecular diagnostics solutions provider has a market capitalization of $10.89 billion. The company projects 22.3% growth for the next five years and expects to maintain strong segmental performance. The company surpassed estimates in three of the trailing four quarters and missed estimates in one, the average surprise being 2.27%.
Let’s delve deeper.
Impressive Q2 Results: QIAGEN’s robust top line in the second quarter of 2020 instills optimism. Its revenue growth across majority of its geographies and both operating segments in the second quarter is impressive. Robust instrument sales were registered for QIAsymphony and QIAcube line of sample processing instruments. Sales of consumables and related revenues remained robust, mainly due to strength in demand for products used in coronavirus testing. Expansion of both margins is encouraging as well.
Responding to the coronavirus pandemic, it scaled up RNA extraction kit and instrument production and launched QIAstat-Dx Respiratory SARS-CoV-2 Panel to speed up virus detection.
Product Launches: We are upbeat about QIAGEN’s recent product launches. The company has planned the U.S. launch of its antibody test, Access Anti-SARS-CoV-2 Total test, in late August. The company has submitted this test for an Emergency Use Authorization to the FDA. In May, the company launched novel solutions to enable faster and better analysis of genomic variations in cancer.
In April, QIAGEN launched its therascreen BRAF V600E RGQ Polymerase Chain Reaction (PCR) Kit (therascreen BRAF V600E) as a companion diagnostic to the BRAF inhibitor, BRAFTOVI (encorafenib) post its FDA clearance.
Huge Potential in Molecular Diagnostics: We are optimistic about the strong performance of QIAGEN’s molecular diagnostic portfolio. The company registered strong sales growth of the QIAsymphony automation system, the QIAcube Connect sample processing instrument and the QIAstat-Dx syndromic testing instrument in the second quarter of 2020.
Notably, despite a decline in QuantiFERON latent tuberculosis test sales during the second quarter of 2020, the company registered solid sales gain at constant exchange rate. The QuantiFERON-TB Gold Plus (QFT-Plus) has been adopted by Nigeria to prevent the spread of tuberculosis. Further, QuantiFERON Access is expected to be launched near the end of 2020 as a CE-IVD solution, thus contributing to the company’s QuantiFERON-TB's momentum.
However, downsides might result from the company’s reliance on commercial relationships. The future level of sales for companion diagnostics depends to a high degree on the commercial success of the related medicines for which the tests have been designed. Further, risks remain that it may be unable to maintain these relationships and its collaborative partners may pursue or develop competing products or technologies, either on their own or in collaboration with others.
QIAGEN is facing intensifying competition from firms providing pre-analytical solutions and other products used by QIAGEN’s customers. The markets for some of the company’s products are very competitive and price sensitive as well.
Estimate Trend
QIAGEN has been witnessing an upward estimate revision trend for 2020. Over the past 90 days, the Zacks Consensus Estimate for its earnings has moved 23.8% north to $2.08.
The Zacks Consensus Estimate for third-quarter 2020 revenues is pegged at $455.7 million, suggesting a 19.1% rise from the year-ago reported number.
Other Key Picks
Other top-ranked stocks from the broader medical space include Hologic, Inc. (HOLX - Free Report) , Thermo Fisher Scientific Inc. (TMO - Free Report) and Globus Medical, Inc. (GMED - Free Report) .
Hologic’s long-term earnings growth rate is estimated at 15.5%. It currently flaunts a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Thermo Fisher’s long-term earnings growth rate is estimated at 15%. It currently carries a Zacks Rank #2 (Buy).
Globus Medical’s long-term earnings growth rate is estimated at 13%. The company presently carries a Zacks Rank #2.
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>