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Here's Why You Should Hold Bio-Rad Stock in Your Portfolio for Now

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Key Takeaways

  • Bio-Rad's Clinical Diagnostics sales rose 2.6% in Q2 2026, led by quality controls and blood typing.
  • Nearly 60% of 2025 revenues came from international markets, with APAC ex-China up 6% currency-neutral.
  • China weakness, regional volatility and FX pressure temper Bio-Rad's outlook for the rest of 2026.

Bio-Rad Laboratories, Inc. (BIO - Free Report) is well poised to grow in the upcoming quarters, given the demand for its quality control and blood typing products in Clinical Diagnostics. In addition, growth across international markets boosts the stock’s appeal. Regional volatility and unfavorable foreign exchange may restrict Bio-Rad’s full growth potential.

In the past year, shares of this Zacks Rank #3 (Hold) company have risen 34.6% against the industry’s 29.1% decline. The S&P 500 composite has seen a 17.6% rise in the same time frame.

The renowned manufacturer and global supplier of clinical diagnostics and life science research products has a market capitalization of $8.44 billion. Bio-Rad has earnings yield of 2.46% compared with the industry’s 2.50% yield. 

Let’s delve deeper.

Tailwinds for BIO Stock 

Clinical Diagnostics Benefits From Core Franchises: Bio-Rad’s Clinical Diagnostics segment remains anchored by quality controls, diabetes and blood typing products. In second-quarter 2026, segment sales reached $399 million, up 2.6% year over year on a reported basis and 0.3% on a currency-neutral basis. Growth in quality systems, diabetes and blood typing products was partly offset by lower infectious disease sales. 

Management also said Clinical Diagnostics returned to modest currency-neutral growth, led by quality controls and blood typing. Management expects improvements from quality controls and blood typing in the fourth quarter of 2026, supporting a recurring-revenue base even as near-term growth remains uneven.

International Reach Provides Diversification: Bio-Rad maintains direct distribution channels in more than 36 countries outside the United States, and nearly 60% of 2025 revenues came from international markets. In second-quarter 2026, Asia Pacific excluding China grew 6% on a currency-neutral basis, while EMEA returned to growth as Middle East revenues increased 7%. China remained weak, but the broader regional mix continues to provide multiple sources of demand across product categories.

What Ails BIO Stock?

Geopolitical and Regional Volatility Raise Costs: Bio-Rad remains exposed to geopolitical disruption that can shift demand, logistics and margins. The continuing conflict in the Middle East is increasing fuel and transportation costs globally, and management expects regional volatility through the second half. 

China, which accounts for about 6% of the company’s revenues, declined in the high teens due to softer demand for Life Science instruments and the timing of quality-control orders. Bio-Rad estimates these China factors will create a roughly $4 million drag over the remainder of 2026. These risks are embedded in the reaffirmed full-year currency-neutral revenue outlook of a 3% decline to 0.5% growth and non-GAAP operating margin guidance of 10% to 12%.

 

Zacks Investment Research
Image Source: Zacks Investment Research

Foreign Exchange Can Obscure Underlying Trends: Bio-Rad generates a substantial portion of sales outside the United States, leaving reported results sensitive to currency movements. In second-quarter 2026, total revenues were essentially flat year over year on a reported basis but declined 1.9% on a currency-neutral basis. The gap shows how exchange rates can mask weaker underlying demand and complicate period-to-period comparisons, while international operating costs can also move with currencies.

BIO Stock Estimate Trends

The Zacks Consensus Estimate for 2026 earnings per share (EPS) has moved south 1.5% to $9.28 in the past 30 days.

The Zacks Consensus Estimate for 2026 revenues is pegged at $2.57 billion, which indicates a modest 0.4% decline from the year-ago reported number.

Key Picks

Some better-ranked stocks in the broader medical space are Veracyte (VCYT - Free Report) , Globus Medical (GMED - Free Report) and Teleflex (TFX - Free Report) .

Veracyte has an earnings yield of 4.7% against the industry’s negative 1.4% yield. Shares of the company have risen 28.2% against the industry’s 3.8% decline. VCYT’s earnings outpaced estimates in each of the trailing four quarters, the average surprise being 41.8%. 

VCYT sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Globus Medical, flaunting a Zacks Rank #1 at present, has an earnings yield of 6.7% against the industry’s negative 1.4% yield. Its earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 27.9%. GMED shares have rallied 27.3% against the industry’s 3.8% decline over the past year.

Teleflex, currently carrying a Zacks Rank #2 (Buy), has an estimated long-term earnings growth rate of 20.7% compared with the industry’s 14.5% growth. Its earnings beat estimates in three of the trailing four quarters and missed on one occasion, the average surprise being 3.2%. TFX shares have gained 4% against the industry’s 3.7% decline over the past year.

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