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Here's Why You Should Hold on to Luminex (LMNX) Stock Now
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Luminex Corporation is well poised for growth backed by its solid molecular diagnostics, ARIES platforms and robust product portfolio.
Shares of Luminex have gained 25%, against the industry’s decline of 6.1% in a year’s time. Meanwhile, the S&P 500 Index has fallen 4.1% in the same timeframe.
Luminex, with a market capitalization of $1.35 billion, develops, manufactures and markets proprietary biological testing technologies with applications throughout the life sciences and diagnostics industry. It anticipates earnings to improve 80% in second-quarter 2020.
Let’s take a closer look at the factors that substantiate the company’s Zacks Rank #3 (Hold).
What’s Deterring the Stock?
Luminex operates in the highly competitive life sciences industry. The industry is characterized by rapid and continuous technological innovation. Currently, it is facing significant competitive headwinds in the respiratory market.
What’s Favoring the Stock?
Luminex has a broad product portfolio that comprises advanced xMAP, xTAG and Multi Code technology. Per management, 2020 will be a transformative year for the company owing to three new product launches supporting a return-to-accelerated growth.
Moreover, the company’s molecular diagnostics platform received a boost on the back of new tests for coronavirus detection. Recently, the company announced that it has received Emergency Use Authorization (EUA) from the FDA for its ARIES SARS-CoV-2 Assay that can rapidly detect the virus causing COVID-19. This development is likely to enable hospital professionals to decide the appropriate course of treatment for patients, who might be infected with COVID-19, within about two hours.
Further, in March, Luminex announced that it has received EUA from the FDA for its NxTAGCoV Extended Panel that will be used to detect the SARS-CoV-2 virus. Now, high-complexity molecular laboratories can utilize the NxTAG test on Luminex’s easy-to-use, compact MAGPIX System, which will help detect the virus causing COVID-19 for up to 96 patients in about four hours.
The company also has been making noteworthy progress with one of its major products – the ARIES system, which represents a major revenue opportunity. The company is focused on fortifying its market leadership in infectious disease with sample to answer platform, the ARIES system.
Estimates Trend
For 2020, the Zacks Consensus Estimate for revenues is pegged at $344.9 million, indicating an improvement of 3.1% from the prior-year period. The same for earnings stands at 4 cents per share, suggesting whopping growth of 119.1% from the year-ago reported figure.
McKesson has an estimated long-term earnings growth rate of 6.1%.
Merit Medical has an estimated long-term earnings growth rate of 12.1%.
Aurora Cannabis has a projected long-term earnings growth rate of 29.8%.
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
Image: Bigstock
Here's Why You Should Hold on to Luminex (LMNX) Stock Now
Luminex Corporation is well poised for growth backed by its solid molecular diagnostics, ARIES platforms and robust product portfolio.
Shares of Luminex have gained 25%, against the industry’s decline of 6.1% in a year’s time. Meanwhile, the S&P 500 Index has fallen 4.1% in the same timeframe.
Luminex, with a market capitalization of $1.35 billion, develops, manufactures and markets proprietary biological testing technologies with applications throughout the life sciences and diagnostics industry. It anticipates earnings to improve 80% in second-quarter 2020.
Let’s take a closer look at the factors that substantiate the company’s Zacks Rank #3 (Hold).
What’s Deterring the Stock?
Luminex operates in the highly competitive life sciences industry. The industry is characterized by rapid and continuous technological innovation. Currently, it is facing significant competitive headwinds in the respiratory market.
What’s Favoring the Stock?
Luminex has a broad product portfolio that comprises advanced xMAP, xTAG and Multi Code technology. Per management, 2020 will be a transformative year for the company owing to three new product launches supporting a return-to-accelerated growth.
Moreover, the company’s molecular diagnostics platform received a boost on the back of new tests for coronavirus detection. Recently, the company announced that it has received Emergency Use Authorization (EUA) from the FDA for its ARIES SARS-CoV-2 Assay that can rapidly detect the virus causing COVID-19. This development is likely to enable hospital professionals to decide the appropriate course of treatment for patients, who might be infected with COVID-19, within about two hours.
Further, in March, Luminex announced that it has received EUA from the FDA for its NxTAGCoV Extended Panel that will be used to detect the SARS-CoV-2 virus. Now, high-complexity molecular laboratories can utilize the NxTAG test on Luminex’s easy-to-use, compact MAGPIX System, which will help detect the virus causing COVID-19 for up to 96 patients in about four hours.
The company also has been making noteworthy progress with one of its major products – the ARIES system, which represents a major revenue opportunity. The company is focused on fortifying its market leadership in infectious disease with sample to answer platform, the ARIES system.
Estimates Trend
For 2020, the Zacks Consensus Estimate for revenues is pegged at $344.9 million, indicating an improvement of 3.1% from the prior-year period. The same for earnings stands at 4 cents per share, suggesting whopping growth of 119.1% from the year-ago reported figure.
Stocks to Consider
Some better-ranked stocks from the broader medical space include McKesson Corporation (MCK - Free Report) , Merit Medical Systems, Inc. (MMSI - Free Report) and Aurora Cannabis Inc. (ACB - Free Report) , each currently carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
McKesson has an estimated long-term earnings growth rate of 6.1%.
Merit Medical has an estimated long-term earnings growth rate of 12.1%.
Aurora Cannabis has a projected long-term earnings growth rate of 29.8%.
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>