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Meridian Bioscience (VIVO) Outpaces Stock Market Gains: What You Should Know

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Meridian Bioscience (VIVO - Free Report) closed at $22.05 in the latest trading session, marking a +1.61% move from the prior day. This move outpaced the S&P 500's daily gain of 1.13%.

Coming into today, shares of the diagnostic test maker had gained 5.49% in the past month. In that same time, the Medical sector gained 1.23%, while the S&P 500 gained 2.39%.

VIVO will be looking to display strength as it nears its next earnings release. In that report, analysts expect VIVO to post earnings of $0.31 per share. This would mark a year-over-year decline of 43.64%. Meanwhile, our latest consensus estimate is calling for revenue of $73.12 million, down 13.77% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $1.72 per share and revenue of $319.54 million, which would represent changes of +60.75% and +25.97%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for VIVO. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. VIVO currently has a Zacks Rank of #4 (Sell).

In terms of valuation, VIVO is currently trading at a Forward P/E ratio of 12.62. For comparison, its industry has an average Forward P/E of 29.6, which means VIVO is trading at a discount to the group.

The Medical - Products industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 173, which puts it in the bottom 32% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

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