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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 recent expansion in test menu and strategic collaborations. Further, the bullish full-year guidance for net sales and EPS buoys optimism. However, competitive headwinds and foreign exchange woes remain.
Over the past year, the Zacks Rank #3 (Hold) stock has declined 0.8% versus a 31.4% decline of the industry and a 14.8% rise of the S&P 500.
The renowned provider of sample to insight solutions has a market capitalization of $10.90 billion. Over the past five years, the company registered earnings growth of 17.8% compared with the industry’s 18.7% rise. The company’s long-term projected growth of 11.5% compares with the industry’s growth projection of 19.4%.
Riding on current business growth and bullish near-term prospects, the company is worth holding on to.
Factors at Play
Progress With Test Menu Expansion: QIAGEN is progressing well with its testing menu expansion strategy.
In January 2022, QIAGEN announced that it is working with genetic laboratories to ramp up COVID-19 testing capacity with its artus SARS-CoV-2 Prep&Amp UM Kit. Notably, the kit utilizes liquid-based sample-preparation technology to reduce two-thirds of the processing time for PCR results. In the same month, QIAGEN launched QuantiFERON-TB Gold Plus assay for tuberculosis (TB) detection, which is set to benefit three additional U.S. patient groups: individuals with weakened immune systems, pregnant women and children.
Strategic Collaborations to Drive Growth: In December 2021, QIAGEN collaborated with Denovo Biopharma to develop a companion diagnostic (CDx) test to treat Diffuse Large B-Cell Lymphoma (DLBCL) — one of the most common lymphoid cancer. The companies seek the FDA premarket approval (PMA) of the companion diagnostic test in conjunction with the new drug application (NDA) approval. During the fourth quarter, the company entered into collaboration with Actome and Atila BioSystems to offer new solutions for protein quantification and noninvasive prenatal testing.
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Bullish Guidance: Investors are upbeat about QIAGEN’s bullish 2022 outlook, which is indicative of future growth. Full-year net sales are expected to be at least $2.07 billion at CER. Adjusted earnings per share (EPS) for 2021 are expected to be at least $2.05 at CER. For the fourth quarter, the company expects net sales to grow at least 7% CER. Adjusted earnings per share are expected to be at least 72 cents at CER compared with 66 cents in the year-ago quarter.
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 4.1% north to $2.05.
The Zacks Consensus Estimate for first-quarter 2022 revenues is pegged at $589.9 million, suggesting a 4% rise from the year-ago reported number.
Key Picks
Some better-ranked stocks in the broader medical space are McKesson Corporation (MCK - Free Report) , AMN Healthcare Services, Inc. (AMN - Free Report) and Bio-Rad Laboratories, Inc. (BIO - Free Report) .
McKesson has a long-term earnings growth rate of 11.8%. MCK has gained 58.4% compared with the industry’s 7.6% growth in the past year.
AMN Healthcare, flaunting a Zacks Rank #1, has a long-term earnings growth rate of 16.2%. The company surpassed earnings estimates in the trailing four quarters, delivering a surprise of 19.5%, on average.
AMN Healthcare has outperformed its industry in the past year. AMN has gained 38.5% versus the 53.4% industry decline.
Bio-Rad reported fourth-quarter 2021 adjusted EPS of $3.21, which surpassed the Zacks Consensus Estimate by 11.9%. It currently has a Zacks Rank #2.
Bio-Rad has an earnings yield of 2.3% versus the industry’s negative yield. BIO surpassed earnings estimates in the trailing four quarters, the average surprise being 66.9%.
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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 recent expansion in test menu and strategic collaborations. Further, the bullish full-year guidance for net sales and EPS buoys optimism. However, competitive headwinds and foreign exchange woes remain.
Over the past year, the Zacks Rank #3 (Hold) stock has declined 0.8% versus a 31.4% decline of the industry and a 14.8% rise of the S&P 500.
The renowned provider of sample to insight solutions has a market capitalization of $10.90 billion. Over the past five years, the company registered earnings growth of 17.8% compared with the industry’s 18.7% rise. The company’s long-term projected growth of 11.5% compares with the industry’s growth projection of 19.4%.
Riding on current business growth and bullish near-term prospects, the company is worth holding on to.
Factors at Play
Progress With Test Menu Expansion: QIAGEN is progressing well with its testing menu expansion strategy.
In January 2022, QIAGEN announced that it is working with genetic laboratories to ramp up COVID-19 testing capacity with its artus SARS-CoV-2 Prep&Amp UM Kit. Notably, the kit utilizes liquid-based sample-preparation technology to reduce two-thirds of the processing time for PCR results. In the same month, QIAGEN launched QuantiFERON-TB Gold Plus assay for tuberculosis (TB) detection, which is set to benefit three additional U.S. patient groups: individuals with weakened immune systems, pregnant women and children.
Strategic Collaborations to Drive Growth: In December 2021, QIAGEN collaborated with Denovo Biopharma to develop a companion diagnostic (CDx) test to treat Diffuse Large B-Cell Lymphoma (DLBCL) — one of the most common lymphoid cancer. The companies seek the FDA premarket approval (PMA) of the companion diagnostic test in conjunction with the new drug application (NDA) approval. During the fourth quarter, the company entered into collaboration with Actome and Atila BioSystems to offer new solutions for protein quantification and noninvasive prenatal testing.
Bullish Guidance: Investors are upbeat about QIAGEN’s bullish 2022 outlook, which is indicative of future growth. Full-year net sales are expected to be at least $2.07 billion at CER. Adjusted earnings per share (EPS) for 2021 are expected to be at least $2.05 at CER. For the fourth quarter, the company expects net sales to grow at least 7% CER. Adjusted earnings per share are expected to be at least 72 cents at CER compared with 66 cents in the year-ago quarter.
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 4.1% north to $2.05.
The Zacks Consensus Estimate for first-quarter 2022 revenues is pegged at $589.9 million, suggesting a 4% rise from the year-ago reported number.
Key Picks
Some better-ranked stocks in the broader medical space are McKesson Corporation (MCK - Free Report) , AMN Healthcare Services, Inc. (AMN - Free Report) and Bio-Rad Laboratories, Inc. (BIO - Free Report) .
McKesson, carrying a Zacks Rank #2 (Buy), reported third-quarter fiscal 2022 EPS of $6.15, which beat the Zacks Consensus Estimate of $5.38 by 14.3%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
McKesson has a long-term earnings growth rate of 11.8%. MCK has gained 58.4% compared with the industry’s 7.6% growth in the past year.
AMN Healthcare, flaunting a Zacks Rank #1, has a long-term earnings growth rate of 16.2%. The company surpassed earnings estimates in the trailing four quarters, delivering a surprise of 19.5%, on average.
AMN Healthcare has outperformed its industry in the past year. AMN has gained 38.5% versus the 53.4% industry decline.
Bio-Rad reported fourth-quarter 2021 adjusted EPS of $3.21, which surpassed the Zacks Consensus Estimate by 11.9%. It currently has a Zacks Rank #2.
Bio-Rad has an earnings yield of 2.3% versus the industry’s negative yield. BIO surpassed earnings estimates in the trailing four quarters, the average surprise being 66.9%.