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Bio-Rad (BIO) Scores a Strong Buy Right Now: Here's How

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Based in Hercules, CA, Bio-Rad Laboratories, Inc. (BIO - Free Report) , together with its subsidiaries, engages in the manufacture and supply of products and systems for the life science research, healthcare, analytical chemistry, and other markets worldwide. It has rallied 12.9% over the last three months, ahead of the S&P 500’s 4.3% gain and also better than the Zacks categorized   Medical - Products  sub-industry's gain of 9.8%.The stock has a market cap of $6.68 billion.

With solid growth prospects, this Zacks Rank #1 (Strong Buy) stock is an attractive pick at present.

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 4.4% to $2.87 per share over the same time frame. The company reported a stellar four-quarter positive average earnings surprise of 13.1%, with an earnings surprise of 51.9% in the last reported first quarter of 2017.

Let’s find out whether the recent positive trend is a sustainable one.

The market is particularly upbeat about Bio-Rad’s several recent strategic developments, the latest one being FDA clearance for its BioPlex 2200 Syphilis Total & RPR assay. This is a one-step universal testing method to aid in the diagnosis of syphilis infection. While broadening the company’s expanding BioPlex 2200 System infectious disease menu, this new product is expected to offer laboratories a simplified approach to syphilis testing. This should increase the company’s customer base.

Also, Bio-Rad announced the receipt of FDA’s 510(k) clearance for enhanced capability with its IH- Com data management software to manage patient results with the company's IH -1000 automated blood typing instrument.

We are also optimistic about the company’s strategic acquisitions. The recent buyout of RainDance gives Bio-Rad valuable intellectual property and further strengthens the current and future offering of droplet-based products for both research and clinical markets.

Bio-Rad and Illumina, Inc. announced the launch of the Illumina Bio-Rad Single-Cell Sequencing Solution. The comprehensive solution is the first next-generation sequencing (NGS) workflow that allows for a deeper view into the gene expression of individual cells.This provides researchers the ability to investigate the coordinated contribution of individual cells in tissue function, disease progression, and therapeutic response.

Other Key Picks

Other top-ranked medical stocks are Align Technology, Inc. (ALGN - Free Report) , Inogen, Inc. (INGN - Free Report) and Accelerate Diagnostics, Inc. (AXDX - Free Report) . Notably, Align Technology and Inogen sport a Zacks Rank #1, while Accelerate Diagnostics carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Align Technology has an expected long-term adjusted earnings growth of almost 24.1%. The stock has added roughly 32.8% over the last three months.

Inogen has a long-term expected earnings growth rate of 17.5%. The stock has gained around 27.7% over the last three months.

Accelerate Diagnostics has an expected long-term adjusted earnings growth of 30%. The stock has gained roughly 30.1% over the last three months.

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