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Here's Why You Should Retain QIAGEN (QGEN) Stock for Now
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QIAGEN N.V. (QGEN - Free Report) is well poised for growth in the coming months, backed by its expansion in testing solutions. The company’s strategic collaboration is expected to drive growth further. However, competitive headwinds and foreign exchange woes remain.
Over the past year, the Zacks Rank #3 (Hold) stock has declined 10.3% versus 37.4% decline of the industry and 20.5% rise of the S&P 500.
The renowned provider of sample to insight solutions has a market capitalization of $11.15 billion. Over the past five years, the company registered earnings growth of 14.6% compared with the industry’s 14.4% rise. The company’s long-term projected growth of 11.5% compares with the industry’s growth projection of 20.2%.
Riding on current business growth and bullish near-term prospects, the company is worth holding on to for now.
Factors at Play
Progress With Test Menu Expansion: QIAGEN is progressing well with its testing menu expansion strategy.
In August 2021, QIAGEN received emergency use authorization (EUA) from the FDA for its QIAreach SARS CoV-2 Antigen Test. The QIAreach SARS CoV-2 Antigen Test can detect SARS CoV-2 antigen in people with active infections in 2-15 minutes and process an average of 30 swab samples per hour. It is a rapid portable test designed to address the high-volume testing needs for SARS-CoV-2 antigens. In July 2021, the company announced the receipt of CE-IVD certification for its NeuMoDx HAdV Quant Assay that allows human adenovirus (HAdV) DNA detection and quantification in the European Union and other countries that accept this marking.
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.
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In August 2021, QIAGEN partnered with GT Molecular to offer a complete wastewater workflow solution to enable surveillance of COVID-19 outbreaks by laboratories in the United States and Canada, with future provisions to expand to other countries. In the same month, the company inked a master collaboration deal with OncXerna Therapeutics, Inc. to develop a NGS-based CDx assay for navicixizumab, one of OncXema’s therapeutic compounds in development for oncology applications.
International Focus to Drive Growth: QIAGEN currently markets products in more than 100 countries. In the quarter under review, revenues from Europe, Middle East and Africa (33% of sales) rose 6% reportedly and 6% at CER. Further, revenues from Asia-Pacific/Japan (21% of sales) increased 22% year over year on a reported basis and 20% at CER.
Downsides
On the flip side, some factors have been deterring the stock’s rally of late.
Competitive Headwinds: Considering QIAGEN’s huge gamut of services, the company is susceptible to competitive headwinds. The company is facing increasing competition from firms that provide competitive pre-analytical solutions and other products used by QIAGEN’s customers.
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 that of high-focus nations.
Estimate Trend
QIAGEN has been witnessing a positive estimate revision trend for 2021. Over the past 90 days, the Zacks Consensus Estimate for its earnings has moved 1.6% north to $2.52.
The Zacks Consensus Estimate for 2021 revenues is pegged at $2.18 billion, suggesting a 16.6% rise from the year-ago reported number.
Key Picks
A few stocks from the broader medical space that investors can consider are AMN Healthcare Services, Inc. (AMN - Free Report) , Cerner Corporation and Henry Schein, Inc. (HSIC - Free Report) .
AMN Healthcare has an estimated long-term growth rate of 16.2%. AMN Healthcare’s earnings surpassed estimates in the trailing four quarters, the average surprise being 19.51%. It currently flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
AMN Healthcare has gained 41% against the industry’s 58.6% fall over the past year.
Cerner, carrying a Zacks Rank #2 (Buy), has an estimated long-term growth rate of 12.8%. Cerner’s earnings surpassed estimates in three of the trailing four quarters, the average surprise being 3.21%.
Cerner has gained 15.9% against the industry’s 54.3% fall over the past year.
Henry Schein has an estimated long-term growth rate of 11.8%. Henry Schein’s earnings surpassed estimates in the trailing four quarters, the average surprise being 21.86%. It currently carries a Zacks Rank #2.
Henry Schein has gained 9.1% compared with the industry’s 3.3% rise over the past year.
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Here's Why You Should Retain QIAGEN (QGEN) Stock for Now
QIAGEN N.V. (QGEN - Free Report) is well poised for growth in the coming months, backed by its expansion in testing solutions. The company’s strategic collaboration is expected to drive growth further. However, competitive headwinds and foreign exchange woes remain.
Over the past year, the Zacks Rank #3 (Hold) stock has declined 10.3% versus 37.4% decline of the industry and 20.5% rise of the S&P 500.
The renowned provider of sample to insight solutions has a market capitalization of $11.15 billion. Over the past five years, the company registered earnings growth of 14.6% compared with the industry’s 14.4% rise. The company’s long-term projected growth of 11.5% compares with the industry’s growth projection of 20.2%.
Riding on current business growth and bullish near-term prospects, the company is worth holding on to for now.
Factors at Play
Progress With Test Menu Expansion: QIAGEN is progressing well with its testing menu expansion strategy.
In August 2021, QIAGEN received emergency use authorization (EUA) from the FDA for its QIAreach SARS CoV-2 Antigen Test. The QIAreach SARS CoV-2 Antigen Test can detect SARS CoV-2 antigen in people with active infections in 2-15 minutes and process an average of 30 swab samples per hour. It is a rapid portable test designed to address the high-volume testing needs for SARS-CoV-2 antigens. In July 2021, the company announced the receipt of CE-IVD certification for its NeuMoDx HAdV Quant Assay that allows human adenovirus (HAdV) DNA detection and quantification in the European Union and other countries that accept this marking.
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 August 2021, QIAGEN partnered with GT Molecular to offer a complete wastewater workflow solution to enable surveillance of COVID-19 outbreaks by laboratories in the United States and Canada, with future provisions to expand to other countries. In the same month, the company inked a master collaboration deal with OncXerna Therapeutics, Inc. to develop a NGS-based CDx assay for navicixizumab, one of OncXema’s therapeutic compounds in development for oncology applications.
International Focus to Drive Growth: QIAGEN currently markets products in more than 100 countries. In the quarter under review, revenues from Europe, Middle East and Africa (33% of sales) rose 6% reportedly and 6% at CER. Further, revenues from Asia-Pacific/Japan (21% of sales) increased 22% year over year on a reported basis and 20% at CER.
Downsides
On the flip side, some factors have been deterring the stock’s rally of late.
Competitive Headwinds: Considering QIAGEN’s huge gamut of services, the company is susceptible to competitive headwinds. The company is facing increasing competition from firms that provide competitive pre-analytical solutions and other products used by QIAGEN’s customers.
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 that of high-focus nations.
Estimate Trend
QIAGEN has been witnessing a positive estimate revision trend for 2021. Over the past 90 days, the Zacks Consensus Estimate for its earnings has moved 1.6% north to $2.52.
The Zacks Consensus Estimate for 2021 revenues is pegged at $2.18 billion, suggesting a 16.6% rise from the year-ago reported number.
Key Picks
A few stocks from the broader medical space that investors can consider are AMN Healthcare Services, Inc. (AMN - Free Report) , Cerner Corporation and Henry Schein, Inc. (HSIC - Free Report) .
AMN Healthcare has an estimated long-term growth rate of 16.2%. AMN Healthcare’s earnings surpassed estimates in the trailing four quarters, the average surprise being 19.51%. It currently flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
AMN Healthcare has gained 41% against the industry’s 58.6% fall over the past year.
Cerner, carrying a Zacks Rank #2 (Buy), has an estimated long-term growth rate of 12.8%. Cerner’s earnings surpassed estimates in three of the trailing four quarters, the average surprise being 3.21%.
Cerner has gained 15.9% against the industry’s 54.3% fall over the past year.
Henry Schein has an estimated long-term growth rate of 11.8%. Henry Schein’s earnings surpassed estimates in the trailing four quarters, the average surprise being 21.86%. It currently carries a Zacks Rank #2.
Henry Schein has gained 9.1% compared with the industry’s 3.3% rise over the past year.