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QGEN Stock Likely to Gain From Innovation Amid Competition
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QIAGEN’s (QGEN - Free Report) business is expected to get a boost from its growing molecular diagnostic market, expanded test menu and growth-driving strategic collaborations. Yet, a challenging macro environment and an intensely competitive market may dent its results of operations. The stock carries a Zacks Rank #3 (Hold) currently.
Factors Driving Growth for QGEN Stock
QIAGEN offers one of the broadest portfolios of molecular technologies for healthcare. Its range of assays for diseases and biomarkers speeds up and simplifies laboratory workflow and standardizes many lab procedures.
The company has established itself as a preferred partner to co-develop companion diagnostics paired with targeted drugs, together with a rich pipeline of molecular tests transforming the treatment of cancer and other diseases. QGEN has more than 30 master collaboration agreements with pharmaceutical industry customers, some with multiple co-development projects. The company noted the expansion of QIAstat into new applications with pharma partners for companion diagnostics. During the second quarter, QIAGEN entered into a new partnership with the U.S. Federal Bureau of Investigation (FBI) to develop a first-of-its-kind digital PCR, which boosts forensics analytics.
In the second quarter of 2024, the 8% CER growth in the Diagnostic Solutions product group underscored the strength and resilience of the company’s portfolio mix. The growth was led by high-single-digit CER gains in consumables sales. The QIAstat- Dx testing system achieved double-digit sales growth, driven by significant gains in consumables and an ongoing good level of instrument placement.
To support internal growth, QIAGEN heavily invests in research and development for the menu expansion of its key platforms.
The second quarter of 2024 saw numerous developments, such as the launch of the Investigator Quantiplex Pro FLX kit, which offers forensic laboratories a high level of sensitivity when processing forensics samples. Within the digital PCR platform QIAcuity, the company launched 35 new wet-lab tested digital PCR Microbial DNA Detection Assays and a new digital PCR Custom Assay Design Tool for copy number variation analysis.
In terms of strategic collaborations, in the second quarter, the company collaborated with Myriad Genetics to develop a globally distributable kit-based test for analyzing the Homologous Recombination Deficiency status. In January, the company, in collaboration with Penn State University, helped shape research, education and outreach in microbiomes.
The stock has gained 11.4% in a year compared with the industry’s 0.7% rise. With the company strategically expanding through innovation and synergistic deals, as well as expanding its business footprint, we expect the stock to continue its upward movement in the coming days.
Factors Weighing on QIAGEN Stock
QIAGEN currently markets products in more than 100 countries. Its international operations are subject to a variety of risks arising from the economy, political outlook, language and cultural barriers in the countries it operates. In many of these emerging markets, QIAGEN faces several risks, which include economies that may be dependent on only a few products and are therefore subject to significant fluctuations, weak legal systems that may affect its ability to enforce contractual rights, exchange controls, unstable governments and privatization or other government actions affecting the flow of goods and currency.
In the quarter under review, the company’s sales in the Asia-Pacific Japan region declined at a low-single-digit CER rate. Sales in China declined at a single-digit CER rate, reflecting the macro challenges in this market that are likely to stay for a while. The industry-wide trend of logistical challenges, arising from growing geopolitical complexities in recent days as well as supply shortages of healthcare labor globally, might result in a deteriorated margin scenario for QIAGEN going forward.
Considering QIAGEN’s huge gamut of services, the company is also susceptible to competitive headwinds. The company is facing increasing competition from firms that provide competitive pre-analytical solutions and other products used by QIAGEN’s customers. The markets for some of the company’s products are very competitive and price-sensitive.
Other product suppliers may have significant advantages in terms of financial, operational, sales and marketing resources and experience in research and development. According to the company, customers in the market for pre-analytical sample technologies and assay technologies display significant loyalty to their initial supplier of a particular product. As a result, it may be not easy to convert customers who have purchased products from competitors.
Intuitive Surgical’s shares have surged 64.8% in the past year. Estimates for the company’s earnings have remained constant at $1.67 per share for 2024 in the past 30 days.
ISRG’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 8.97%. In the last reported quarter, it posted an earnings surprise of 16.34%.
Estimates for TransMedics’ 2024 EPS have moved up 2.5% to $1.23 in the past 30 days. Shares of the company have soared 156.5% in the past year compared with the industry’s 17.5% growth.
TMDX’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 287.50%. In the last reported quarter, it delivered an earnings surprise of 66.67%.
Estimates for Boston Scientific’s 2024 EPS have increased 3.4% to $2.40 in the past 60 days. In the past year, shares of BSX have risen 57.6% compared with the industry’s 19.5% growth.
In the last reported quarter, BSX delivered an earnings surprise of 6.90%. Its earnings surpassed estimates in each of the trailing four quarters, the average surprise being 7.18%.
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QGEN Stock Likely to Gain From Innovation Amid Competition
QIAGEN’s (QGEN - Free Report) business is expected to get a boost from its growing molecular diagnostic market, expanded test menu and growth-driving strategic collaborations. Yet, a challenging macro environment and an intensely competitive market may dent its results of operations. The stock carries a Zacks Rank #3 (Hold) currently.
Factors Driving Growth for QGEN Stock
QIAGEN offers one of the broadest portfolios of molecular technologies for healthcare. Its range of assays for diseases and biomarkers speeds up and simplifies laboratory workflow and standardizes many lab procedures.
The company has established itself as a preferred partner to co-develop companion diagnostics paired with targeted drugs, together with a rich pipeline of molecular tests transforming the treatment of cancer and other diseases. QGEN has more than 30 master collaboration agreements with pharmaceutical industry customers, some with multiple co-development projects. The company noted the expansion of QIAstat into new applications with pharma partners for companion diagnostics. During the second quarter, QIAGEN entered into a new partnership with the U.S. Federal Bureau of Investigation (FBI) to develop a first-of-its-kind digital PCR, which boosts forensics analytics.
In the second quarter of 2024, the 8% CER growth in the Diagnostic Solutions product group underscored the strength and resilience of the company’s portfolio mix. The growth was led by high-single-digit CER gains in consumables sales. The QIAstat- Dx testing system achieved double-digit sales growth, driven by significant gains in consumables and an ongoing good level of instrument placement.
To support internal growth, QIAGEN heavily invests in research and development for the menu expansion of its key platforms.
QIAGEN N.V. Price
QIAGEN N.V. price | QIAGEN N.V. Quote
The second quarter of 2024 saw numerous developments, such as the launch of the Investigator Quantiplex Pro FLX kit, which offers forensic laboratories a high level of sensitivity when processing forensics samples. Within the digital PCR platform QIAcuity, the company launched 35 new wet-lab tested digital PCR Microbial DNA Detection Assays and a new digital PCR Custom Assay Design Tool for copy number variation analysis.
In terms of strategic collaborations, in the second quarter, the company collaborated with Myriad Genetics to develop a globally distributable kit-based test for analyzing the Homologous Recombination Deficiency status. In January, the company, in collaboration with Penn State University, helped shape research, education and outreach in microbiomes.
The stock has gained 11.4% in a year compared with the industry’s 0.7% rise. With the company strategically expanding through innovation and synergistic deals, as well as expanding its business footprint, we expect the stock to continue its upward movement in the coming days.
Factors Weighing on QIAGEN Stock
QIAGEN currently markets products in more than 100 countries. Its international operations are subject to a variety of risks arising from the economy, political outlook, language and cultural barriers in the countries it operates. In many of these emerging markets, QIAGEN faces several risks, which include economies that may be dependent on only a few products and are therefore subject to significant fluctuations, weak legal systems that may affect its ability to enforce contractual rights, exchange controls, unstable governments and privatization or other government actions affecting the flow of goods and currency.
In the quarter under review, the company’s sales in the Asia-Pacific Japan region declined at a low-single-digit CER rate. Sales in China declined at a single-digit CER rate, reflecting the macro challenges in this market that are likely to stay for a while. The industry-wide trend of logistical challenges, arising from growing geopolitical complexities in recent days as well as supply shortages of healthcare labor globally, might result in a deteriorated margin scenario for QIAGEN going forward.
Considering QIAGEN’s huge gamut of services, the company is also susceptible to competitive headwinds. The company is facing increasing competition from firms that provide competitive pre-analytical solutions and other products used by QIAGEN’s customers. The markets for some of the company’s products are very competitive and price-sensitive.
Other product suppliers may have significant advantages in terms of financial, operational, sales and marketing resources and experience in research and development. According to the company, customers in the market for pre-analytical sample technologies and assay technologies display significant loyalty to their initial supplier of a particular product. As a result, it may be not easy to convert customers who have purchased products from competitors.
Key Picks
Some better-ranked stocks in the broader medical space are Intuitive Surgical (ISRG - Free Report) , TransMedics Group (TMDX - Free Report) and Boston Scientific (BSX - Free Report) . While Intuitive Surgical and TransMedics currently sport a Zacks Rank #1 (Strong Buy) each, Boston Scientific carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Intuitive Surgical’s shares have surged 64.8% in the past year. Estimates for the company’s earnings have remained constant at $1.67 per share for 2024 in the past 30 days.
ISRG’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 8.97%. In the last reported quarter, it posted an earnings surprise of 16.34%.
Estimates for TransMedics’ 2024 EPS have moved up 2.5% to $1.23 in the past 30 days. Shares of the company have soared 156.5% in the past year compared with the industry’s 17.5% growth.
TMDX’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 287.50%. In the last reported quarter, it delivered an earnings surprise of 66.67%.
Estimates for Boston Scientific’s 2024 EPS have increased 3.4% to $2.40 in the past 60 days. In the past year, shares of BSX have risen 57.6% compared with the industry’s 19.5% growth.
In the last reported quarter, BSX delivered an earnings surprise of 6.90%. Its earnings surpassed estimates in each of the trailing four quarters, the average surprise being 7.18%.