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Luminex (LMNX) Banks on Portfolio Strength, View Impressive

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On Jun 21, we issued an updated research report on Austin, TX–based Luminex Corp – a manufacturer and marketer of proprietary biological testing technologies with applications throughout the life sciences and diagnostics industry. The company currently sports a Zacks Rank #1 (Strong Buy).

After posting a strong first quarter, Luminex is now expected to benefit from its ARIES System, favorable tidings at the regulatory-front and the NxTAG Respiratory Pathogen Panel expansion plans. We believe these products will serve as a major growth driver over the long term by accelerating organic growth and expanding market share.

Luminex has a broad product portfolio that comprises its advanced xMAP, xTAG and MultiCode technology. The company’s large installed instrument base consists of the Luminex 100 (LX100), Luminex 200 (LX200), FlexMap 3D systems and the MAGPIX technology.

Furthermore, the company revised its 2017 annual revenue guidance to the band of $300–$310 million, reflecting an improvement from the previously issued $295–$305 million band. The company reported earnings of 27 cents per share in the first quarter of 2017, reflecting an increase of 3.87% year over year. Revenues in the quarter rose almost 23.5% year over year to $77.9 million.

The company’s estimate revision trend for the current year has also been positive. In the past 60 days, two analysts moved north, with no movement in the opposite direction. The magnitude of estimate revision increased around 37.5% to 55 cents per share over the same time frame.

A glimpse at the price movement reveals that Luminex has had an impressive run on the bourse over the last three months. The company gained roughly 16.3%, higher than the Zacks categorized Medical instruments sub-industry’s addition of almost 10.3%. Moreover, the current level compares favorably with the S&P 500’s return of 5.3% over the same time frame. This, together with a long-term expected earnings growth rate of 16.3%, instills confidence in investors.

Key Picks

Better-ranked stocks in the broader medical sector include Inogen Inc. (INGN - Free Report) , CryoLife, Inc. and IDEXX Laboratories, Inc. (IDXX - Free Report) . Notably, Inogen sports a Zacks Rank #1, while IDEXX and CryoLife carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Inogen has a long-term expected earnings growth rate of 17.50%. Notably, the stock represents an impressive one-year return of 102.3%.

CryoLife represents a strong return of 4.6% over the last one month. The stock posted a positive earnings surprise of 80% in the last reported quarter.

IDEXX Laboratories has a long-term expected earnings growth rate of 19.37%. Additionally, the stock represents an impressive one-year return of 81.8%.

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