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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 quarters, led by progress in the test menu expansion strategy. The optimism led by the robust third-quarter 2022 performance and a few strategic collaborations in the past few months are expected to contribute further.
However, headwinds from QIAGEN’s reliance on commercial relationships and a stiff competitive landscape persist. In the past year, this Zacks Rank #3 (Hold) stock has risen 4.4% compared to a 14.1% decline in the industry and a 17.3% fall in the S&P 500 composite.
The renowned molecular diagnostics solutions provider has a market capitalization of $11.56 billion. QIAGEN projects 17.5% growth for the next five years and expects to maintain a strong segmental performance. The company surpassed estimates in all the trailing four quarters, the average surprise being 16.8%.
Let’s delve deeper.
Factors at Play
Q3 Upsides: QIAGEN ended the third quarter of 2022 with better-than-expected earnings and revenues. The ongoing double-digit sales growth in the non-COVID product portfolio, a high level of profitability and strong cash flow are the major upsides.
QIAGEN continues to see the broad-based demand for its solutions in molecular research and clinical testing markets globally. The raised full-year 2022 guidance for net sales and EPS indicates this growth momentum to continue.
Progress in Test Menu Expansion: QIAGEN is progressing well in its testing menu expansion strategy.
In December 2022, QIAGEN received FDA approval for its therascreen KRAS RGQ PCR kit (therascreen KRAS kit). The kit is approved as a companion diagnostic to support detecting non-small-cell lung cancer patients eligible for treatment with KRAZATI (adagrasib).
In November 2022, QIAGEN launched the monkeypox (MPXV) test for its NeuMoDx automated polymerase chain reaction platform — NeuMoDx MPXV Test Strip — to strengthen the surveillance and research of the current outbreak in non-endemic regions.
Strategic Collaborations to Drive Growth: QIAGEN’s long-term business strategy involves entering into strategic alliances and marketing and distribution arrangements with academic, corporate and other partners relating to the development, commercialization, marketing and distribution of some of their existing and potential products.
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In line with its strategy, in January 2023, QGEN completed the acquisition of Verogen — a provider of next-generation sequencing technologies — to increase its position in human identification and forensics. The acquisition of Verogen fortifies QIAGEN’s position in the fast-growing field of Human ID and forensics, anchored by sample collection and preparation, genetic testing analysis and workflow automation.
Downsides
Reliance on Commercial Relationships: QGEN’s personalized Healthcare business comprises the formation of projects with pharmaceutical and biotechnology companies to co-develop companion diagnostics paired with drugs those companies either market currently or are developing for future use. The future level of sales for companion diagnostics depends on the commercial success of the related medicines for which the tests have been designed for determining their use in patients.
In addition, risks remain that the company may be unable to maintain these relationships. Further, its collaborative partners may pursue or develop competing products or technologies either on their own or in collaboration with others.
Competitive Headwinds: Considering QIAGEN’s huge gamut of services, the company is susceptible to competitive headwinds. It is facing increasing competition from firms that provide competitive pre-analytical solutions and other products used by QIAGEN’s customers.
The markets for some of the company’s products are very competitive and price-sensitive. Other product suppliers may have significant advantages in terms of financial, operational, sales and marketing resources, as well as experience in research and development.
Estimate Trend
QIAGEN has been witnessing an upward estimate revision trend for 2022. Over the past 90 days, the Zacks Consensus Estimate for its earnings has moved 4.9% north to $2.32.
The Zacks Consensus Estimate for 2022 revenues is pegged at $2.12 billion, suggesting a 5.8% decline from the year-ago reported number.
Key Picks
Some better-ranked stocks from the broader medical space are AMN Healthcare Services, Inc. (AMN - Free Report) , Boston Scientific Corporation (BSX - 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 dropped 10.6% compared with the industry’s 30.3% decline in the past year.
Boston Scientific, carrying a Zacks Rank #2 at present, has an estimated long-term growth rate of 10.3%. BSX’s earnings surpassed estimates in three of the trailing four quarters and missed the same in one, the average beat being 1.9%.
Boston Scientific has risen 6.8% against the industry’s 42.6% 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 risen 13.7% against the industry’s 8.7% fall 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 quarters, led by progress in the test menu expansion strategy. The optimism led by the robust third-quarter 2022 performance and a few strategic collaborations in the past few months are expected to contribute further.
However, headwinds from QIAGEN’s reliance on commercial relationships and a stiff competitive landscape persist. In the past year, this Zacks Rank #3 (Hold) stock has risen 4.4% compared to a 14.1% decline in the industry and a 17.3% fall in the S&P 500 composite.
The renowned molecular diagnostics solutions provider has a market capitalization of $11.56 billion. QIAGEN projects 17.5% growth for the next five years and expects to maintain a strong segmental performance. The company surpassed estimates in all the trailing four quarters, the average surprise being 16.8%.
Let’s delve deeper.
Factors at Play
Q3 Upsides: QIAGEN ended the third quarter of 2022 with better-than-expected earnings and revenues. The ongoing double-digit sales growth in the non-COVID product portfolio, a high level of profitability and strong cash flow are the major upsides.
QIAGEN continues to see the broad-based demand for its solutions in molecular research and clinical testing markets globally. The raised full-year 2022 guidance for net sales and EPS indicates this growth momentum to continue.
Progress in Test Menu Expansion: QIAGEN is progressing well in its testing menu expansion strategy.
In December 2022, QIAGEN received FDA approval for its therascreen KRAS RGQ PCR kit (therascreen KRAS kit). The kit is approved as a companion diagnostic to support detecting non-small-cell lung cancer patients eligible for treatment with KRAZATI (adagrasib).
In November 2022, QIAGEN launched the monkeypox (MPXV) test for its NeuMoDx automated polymerase chain reaction platform — NeuMoDx MPXV Test Strip — to strengthen the surveillance and research of the current outbreak in non-endemic regions.
Strategic Collaborations to Drive Growth: QIAGEN’s long-term business strategy involves entering into strategic alliances and marketing and distribution arrangements with academic, corporate and other partners relating to the development, commercialization, marketing and distribution of some of their existing and potential products.
In line with its strategy, in January 2023, QGEN completed the acquisition of Verogen — a provider of next-generation sequencing technologies — to increase its position in human identification and forensics. The acquisition of Verogen fortifies QIAGEN’s position in the fast-growing field of Human ID and forensics, anchored by sample collection and preparation, genetic testing analysis and workflow automation.
Downsides
Reliance on Commercial Relationships: QGEN’s personalized Healthcare business comprises the formation of projects with pharmaceutical and biotechnology companies to co-develop companion diagnostics paired with drugs those companies either market currently or are developing for future use. The future level of sales for companion diagnostics depends on the commercial success of the related medicines for which the tests have been designed for determining their use in patients.
In addition, risks remain that the company may be unable to maintain these relationships. Further, its collaborative partners may pursue or develop competing products or technologies either on their own or in collaboration with others.
Competitive Headwinds: Considering QIAGEN’s huge gamut of services, the company is susceptible to competitive headwinds. It is facing increasing competition from firms that provide competitive pre-analytical solutions and other products used by QIAGEN’s customers.
The markets for some of the company’s products are very competitive and price-sensitive. Other product suppliers may have significant advantages in terms of financial, operational, sales and marketing resources, as well as experience in research and development.
Estimate Trend
QIAGEN has been witnessing an upward estimate revision trend for 2022. Over the past 90 days, the Zacks Consensus Estimate for its earnings has moved 4.9% north to $2.32.
The Zacks Consensus Estimate for 2022 revenues is pegged at $2.12 billion, suggesting a 5.8% decline from the year-ago reported number.
Key Picks
Some better-ranked stocks from the broader medical space are AMN Healthcare Services, Inc. (AMN - Free Report) , Boston Scientific Corporation (BSX - 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 dropped 10.6% compared with the industry’s 30.3% decline in the past year.
Boston Scientific, carrying a Zacks Rank #2 at present, has an estimated long-term growth rate of 10.3%. BSX’s earnings surpassed estimates in three of the trailing four quarters and missed the same in one, the average beat being 1.9%.
Boston Scientific has risen 6.8% against the industry’s 42.6% 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 risen 13.7% against the industry’s 8.7% fall over the past year.