We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Here's Why You Should Retain QuidelOrtho (QDEL) Stock for Now
Read MoreHide Full Article
QuidelOrtho Corporation (QDEL - Free Report) is well-poised for growth in the coming quarters, courtesy of its strong product portfolio. The optimism led by a solid third-quarter 2022 performance, along with a few product launches, is expected to contribute further. However, headwinds due to third-party reimbursement policies and overdependence on diagnostic tests persist.
Over the past year, this Zacks Rank #3 (Hold) stock has lost 30.3% compared with 40.9% decline of the industry and the S&P 500's 18% fall.
This renowned rapid diagnostic testing solutions provider has a market capitalization of $5.99 billion. QuidelOrtho has an earnings yield of 5.6% against the industry’s negative yield. QuidelOrtho’s earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters and missed the same in the other, the average surprise being 60.1%.
Image Source: Zacks Investment Research
Let’s delve deeper.
Strong Product Portfolio: We are upbeat about QuidelOrtho’s products, which it sells directly to end users and distributors, in each case, for professional as well as individual, non-professional and over-the-counter use. Currently, QuidelOrtho’s diagnostic testing solutions include the Sofia and Sofia 2 Analyzers, QuickVue, and InflammaDry and AdenoPlus products. Some other notable products include the Lyra Molecular Real-Time PCR assays, the Solana system, the Savanna multiplex molecular analyzer system and the Savanna RVP4 assay.
Product Launch: We are upbeat about numerous product launches by QuidelOrtho over the past few months. In the third quarter of 2022, the company’s Labs business unit launched seven new and refreshed assays globally. QuidelOrtho is also on track to commercialize its vitros-XT3400 chemistry system in China in the fourth quarter of 2022 following the receipt of China's regulatory clearance.
Strong Q3 Results: QuidelOrtho’s robust third-quarter 2022 results buoy optimism. The company recorded robust overall top-line performance. Its robust overall top-line performance, driven by Point-of-Care and Donor Screening product lines, was impressive. The company recorded strong revenues in the majority of its geographies at a constant exchange rate, excluding COVID-19 revenues. QuidelOrtho’s expanded global commercial footprint also raises optimism about the stock.
Downsides
Third-Party Reimbursement Policies: The end users of QuidelOrtho’s Point-of-Care products are primarily physicians and other healthcare providers. In the United States, healthcare providers like hospitals and physicians who purchase diagnostic products generally rely on third-party payers to reimburse all or part of the cost of the procedure. The use of QuidelOrtho’s products would be adversely impacted if physicians and other healthcare providers do not receive adequate reimbursement for the cost of the company’s products from their patients’ third-party payers.
Overdependence on Diagnostic Tests: A significant percentage of QuidelOrtho’s revenues comes from the sale of COVID-19 and influenza tests and these are expected to remain a significant portion of the company’s total revenues for at least in the near future. As a result, if sales or revenues of COVID-19 or influenza tests fall for any reason, the company’s operating results will be affected.
Estimate Trend
QuidelOrtho is witnessing a positive estimate revision trend for 2023. In the past 90 days, the Zacks Consensus Estimate for its earnings has moved 7.9% north to $13.42.
The Zacks Consensus Estimate for the company’s fourth-quarter 2022 revenues is pegged at $753 million, suggesting an 18.2% improvement from the year-ago quarter’s reported number.
Key Picks
Some better-ranked stocks in the broader medical space are AMN Healthcare Services, Inc. (AMN - Free Report) , Cardinal Health, Inc. (CAH - Free Report) and Merit Medical Systems, Inc. (MMSI - Free Report) .
AMN Healthcare, carrying a Zacks Rank #2 (Buy) at present, has an estimated long-term growth rate of 3.3%. AMN’s earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average beat being 10.9%.
AMN Healthcare has gained 2.5% against the industry’s 28.8% decline in the past year.
Cardinal Health, carrying a Zacks Rank #2 at present, has an estimated long-term growth rate of 11.7%. CAH’s earnings surpassed estimates in two of the trailing four quarters and missed the same in the other two, the average beat being 3%.
Cardinal Health has gained 54.1% against the industry’s 6.3% decline over the past year.
Merit Medical, carrying a Zacks Rank #2 at present, has an estimated long-term growth rate of 11%. MMSI’s earnings surpassed estimates in all the trailing four quarters, the average beat being 25.4%.
Merit Medical has gained 20.9% against the industry’s 6.3% decline over the past year.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Here's Why You Should Retain QuidelOrtho (QDEL) Stock for Now
QuidelOrtho Corporation (QDEL - Free Report) is well-poised for growth in the coming quarters, courtesy of its strong product portfolio. The optimism led by a solid third-quarter 2022 performance, along with a few product launches, is expected to contribute further. However, headwinds due to third-party reimbursement policies and overdependence on diagnostic tests persist.
Over the past year, this Zacks Rank #3 (Hold) stock has lost 30.3% compared with 40.9% decline of the industry and the S&P 500's 18% fall.
This renowned rapid diagnostic testing solutions provider has a market capitalization of $5.99 billion. QuidelOrtho has an earnings yield of 5.6% against the industry’s negative yield. QuidelOrtho’s earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters and missed the same in the other, the average surprise being 60.1%.
Image Source: Zacks Investment Research
Let’s delve deeper.
Strong Product Portfolio: We are upbeat about QuidelOrtho’s products, which it sells directly to end users and distributors, in each case, for professional as well as individual, non-professional and over-the-counter use. Currently, QuidelOrtho’s diagnostic testing solutions include the Sofia and Sofia 2 Analyzers, QuickVue, and InflammaDry and AdenoPlus products. Some other notable products include the Lyra Molecular Real-Time PCR assays, the Solana system, the Savanna multiplex molecular analyzer system and the Savanna RVP4 assay.
Product Launch: We are upbeat about numerous product launches by QuidelOrtho over the past few months. In the third quarter of 2022, the company’s Labs business unit launched seven new and refreshed assays globally. QuidelOrtho is also on track to commercialize its vitros-XT3400 chemistry system in China in the fourth quarter of 2022 following the receipt of China's regulatory clearance.
Strong Q3 Results: QuidelOrtho’s robust third-quarter 2022 results buoy optimism. The company recorded robust overall top-line performance. Its robust overall top-line performance, driven by Point-of-Care and Donor Screening product lines, was impressive. The company recorded strong revenues in the majority of its geographies at a constant exchange rate, excluding COVID-19 revenues. QuidelOrtho’s expanded global commercial footprint also raises optimism about the stock.
Downsides
Third-Party Reimbursement Policies: The end users of QuidelOrtho’s Point-of-Care products are primarily physicians and other healthcare providers. In the United States, healthcare providers like hospitals and physicians who purchase diagnostic products generally rely on third-party payers to reimburse all or part of the cost of the procedure. The use of QuidelOrtho’s products would be adversely impacted if physicians and other healthcare providers do not receive adequate reimbursement for the cost of the company’s products from their patients’ third-party payers.
Overdependence on Diagnostic Tests: A significant percentage of QuidelOrtho’s revenues comes from the sale of COVID-19 and influenza tests and these are expected to remain a significant portion of the company’s total revenues for at least in the near future. As a result, if sales or revenues of COVID-19 or influenza tests fall for any reason, the company’s operating results will be affected.
Estimate Trend
QuidelOrtho is witnessing a positive estimate revision trend for 2023. In the past 90 days, the Zacks Consensus Estimate for its earnings has moved 7.9% north to $13.42.
The Zacks Consensus Estimate for the company’s fourth-quarter 2022 revenues is pegged at $753 million, suggesting an 18.2% improvement from the year-ago quarter’s reported number.
Key Picks
Some better-ranked stocks in the broader medical space are AMN Healthcare Services, Inc. (AMN - Free Report) , Cardinal Health, Inc. (CAH - Free Report) and Merit Medical Systems, Inc. (MMSI - Free Report) .
AMN Healthcare, carrying a Zacks Rank #2 (Buy) at present, has an estimated long-term growth rate of 3.3%. AMN’s earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average beat being 10.9%.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
AMN Healthcare has gained 2.5% against the industry’s 28.8% decline in the past year.
Cardinal Health, carrying a Zacks Rank #2 at present, has an estimated long-term growth rate of 11.7%. CAH’s earnings surpassed estimates in two of the trailing four quarters and missed the same in the other two, the average beat being 3%.
Cardinal Health has gained 54.1% against the industry’s 6.3% decline over the past year.
Merit Medical, carrying a Zacks Rank #2 at present, has an estimated long-term growth rate of 11%. MMSI’s earnings surpassed estimates in all the trailing four quarters, the average beat being 25.4%.
Merit Medical has gained 20.9% against the industry’s 6.3% decline over the past year.