Thermo Fisher Scientific Inc. ( TMO Quick Quote TMO - Free Report) recently announced a significant expansion of the K-12 ReadyCheckGo COVID-19 testing solution in Texas in collaboration with Color Health. Currently, Thermo Fisher is the leading single-source supplier of COVID-19 testing with the contribution to more than 50% of worldwide testing.
For investors’ note, Color Health brings wide-ranging experience and a complete software platform that simplifies registration, consent, sample management and reporting.
The recent development is likely to expand Thermo Fisher’s reach in COVID-19 testing.
More on the ReadyCheckGo Program
The ReadyCheckGo Program features a variety of testing options that can be utilized as per the requirements of each school district. ReadyCheckGo allows schools to test students quickly, manage the logistics of monitoring results, and update parents and staff accordingly. At present, 32 districts are in the process of onboarding the testing solution and more are expected to join.
The K-12 ReadyCheckGo program was created in agreement with the Texas Department of State Health Services (DSHS) and is currently available to all school districts in the state. In addition to Texas, school districts in Ohio, North Carolina and Wisconsin, ReadyCheckGo solutions are currently utilized by Chicago Public Schools.
Significance of the Program
Thermo Fisher’s management states that testing is crucial for keeping schools open despite vaccines being approved for new-age groups. With the launch of the ReadyCheckGo program, schools will have the options for fast, reliable testing to quickly detect and curb the spread of COVID-19 for Texas students and teachers.
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The new testing approach provides durable health infrastructure to K-12 schools throughout the nation, helping students remain healthy during this next phase of the pandemic.
Industry Prospects Per a report by BCC Research, the global COVID-19 diagnostic services market was valued at $60.30 billion in 2020 and is expected to reach $195.10 billion by 2027, at a CAGR of 15%.
The rise in COVID-19 cases fueled demand for testing equipment, which is expected to drive the market.
In November 2021, Thermo Fisher announced the selection of a new manufacturing facility in Mebane, NC, to boost the domestic supply of critically needed laboratory plastics. The new manufacturing facility is part of a co-investment with the U.S. government to ensure a domestic supply of critically needed laboratory pipette tips.
In the same month, Thermo Fisher announced the launch of a new in vitro diagnostic (IVD) system that will enable the company to expand its assay menus and IVD testing capabilities going forward. The Applied Biosystems QuantStudio 7 Pro Dx Real-Time PCR System is a compact instrument that effortlessly transitions from development to validation for maximum productivity.
Shares of the company have gained 34.5% in a year compared with the
industry’s rise of 3.9%. Zacks Rank and Other Key Picks
Thermo Fisher currently carries a Zacks Rank #2 (Buy).
A few other similar-ranked stocks from the broader medical space are
Chemed Corporation ( CHE Quick Quote CHE - Free Report) , Laboratory Corporation of America Holdings, or LabCorp ( LH Quick Quote LH - Free Report) and Medpace Holdings, Inc. ( MEDP Quick Quote MEDP - Free Report) , each presently carrying a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Chemed has a long-term earnings growth rate of 7.7%. The company surpassed earnings per share (EPS) estimates in three of the trailing four quarters and missed in one, delivering a surprise of 5.6%, on average.
Chemed has outperformed its industry over the past year. CHE has gained 3.7% against the industry’s 35.6% decline.
LabCorp reported third-quarter 2021 adjusted EPS of $6.82, which surpassed the Zacks Consensus Estimate by 42.9%. Revenues of $4.06 billion outpaced the Zacks Consensus Estimate by 13.4%.
LabCorp has an estimated long-term growth rate of 10.6%. LH surpassed estimates in the trailing four quarters, the average surprise being 25.7%.
Medpace reported third-quarter 2021 adjusted EPS of $1.29, surpassing the Zacks Consensus Estimate by 20.6%. Revenues of $295.57 million beat the Zacks Consensus Estimate by 1.2%.
Medpace has an estimated long-term growth rate of 16.4%. MEDP surpassed estimates in the trailing four quarters, the average surprise being 11.9%.