Yahoo Finance Bio-Rad (BIO) Banks on Coronavirus PCR Tests Amid Cost Woes
On Jul 8, we issued an updated research report on Bio-Rad Laboratories, Inc. BIO. The company’s solid prospects in the blood-typing market make us optimistic while its shrinking gross margin is a concern. The stock currently carries a Zacks Rank #3 (Hold).
This California-based manufacturer and global supplier of clinical diagnostics and life-science research products has been outperforming its industry for the past six months. The stock has gained 20.5% against the industry’s 9.6% fall.
In the first quarter of 2020, Bio-Rad witnessed solid revenue growth at both operating segments. Further, strength in many of its key product lines across major geographic regions buoyed optimism.
BioRad Laboratories, Inc. Price
BioRad Laboratories, Inc. price | BioRad Laboratories, Inc. Quote
The uptick in core PCR and Droplet Digital PCR product revenues resulted from robust demand due to coronavirus testing and related research. Further, the FDA’s emergency use authorization (EUA) for the Droplet Digital PCR COVID-19 test kit was encouraging.
Partnerships and collaborations at the time of the pandemic seem strategic for the company. It announced in March that it is providing Real-Time qPCR products to testing laboratories worldwide to screen COVID-19 patients.
Expansion of the company’s adjusted operating margin instills optimism. A strong solvency with slight leverage, solid prospects in blood typing market and focus on international markets are other positives.
On the flip side, escalating costs and expenses are putting pressure on the bottom line. Also, foreign-exchange woes and operation in a highly competitive market raise concern.
Global macroeconomic woes stemming from the coronavirus pandemic is another headwind for the company.
Key Picks
Some better-ranked stocks from the broader medical space are Quest Diagnostics Incorporated DGX, Abbott Laboratories ABT and QIAGEN N.V. QGEN.
Quest Diagnostics’ long-term earnings growth rate is projected at 7.6%. It currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
QIAGEN’s long-term earnings growth rate is estimated at 12.2%. It currently sports a Zacks Rank #1.
Abbott’s long-term earnings growth rate is estimated at 8.6%. The company presently carries a Zacks Rank #2 (Buy).
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Quest Diagnostics Incorporated (DGX) : Free Stock Analysis Report
QIAGEN N.V. (QGEN) : Free Stock Analysis Report
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BioRad Laboratories, Inc. (BIO) : Free Stock Analysis Report
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