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Analyst Blog

Share price of Carlsbad, CA-based GenMark Diagnostics, Inc. (GNMK - Free Report) reached a new 52-week high of $12.03 on Sep 27, eventually finishing a tad lower at $11.95. The company gained 59.12% over the past one year, much better than the S&P 500’s gain of 14.64% over the same period. It has added roughly 53.99% year to date compared to the S&P 500’s 5.67%.

Meanwhile, we note that GenMark Diagnostics carries a Zacks Rank #3 (Hold). The stock has a market cap of $513.78 million.

GenMark Diagnostics’ last 5-year revenue growth rate stands at 53%, way higher than the industry average of 15.6%.

GENMARK DIAGNST Price and Consensus

GENMARK DIAGNST Price and Consensus | GENMARK DIAGNST Quote

Estimate revision trend for the company also looks good. In the past 60 days, one estimate has gone up with no downward revision, both for the current quarter and year.

We note that, in the second quarter, GenMark Diagnostics reported earnings of 6 cents per share, comparing favorably with the Zacks Consensus Estimate of a loss of 5 cents. The trailing four-quarter average earning surprise is positive at 9.19%.

Growth Factors

GenMark Diagnostics continues to grow through the successful implementation of its product development and commercialization strategies. Recently, the company received CE Mark for its ePlex Instrument System and ePlex Respiratory Pathogen (RP) Panel. This has been an important accomplishment for the company which should boost revenues in the molecular diagnostic testing segment going forward. The market adoption of the system has also been quite strong which is evident from the string of European agreements signed by the company for ePlex.

In the recently concluded second quarter, GenMark Diagnostics recorded a 64% increase in its revenues. Further, the company has placed 13 XT-8 analyzers in end user labs during the quarter. For the placements, GenMark Diagnostics redeployed non-existing XT-8 analyzers from certain low test volume customers and replaced four new analyzers in end-user labs, thereby expanding the company’s installed base of XT-8 analyzers to 648.

Key Picks

Better-ranked stocks in the medical product sector are GW Pharmaceuticals plc (GWPH - Free Report) , Quidel Corp. (QDEL - Free Report) and NuVasive, Inc. (NUVA - Free Report) . GW Pharmaceuticals and Quidel sport a Zacks Rank #1 (Strong Buy) while NuVasive carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

GW Pharmaceuticals recorded 79.88% year to date, far better than the S&P 500’s 5.67% gain over the same time frame.

Quidel gained 17.48% in the past one year, higher than the S&P 500’s gain of 14.64%. Over the next five years, the stock is estimated to record earnings growth of 20%, higher than the industry average of 14.8%.

NuVasive gained 43.78% over the past one year compared to the S&P 500’s gain of 14.64%. Over the next five years, the stock is expected to see 16.7% earnings growth compared to the industry average of 14.8%.

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