On Jun 5, 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.
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 23.9% against the industry’s 6.3% decline.
Bio-Rad exited the first quarter of 2020 with better-than-expected results. The company 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 in 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.
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.The stock currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks from the broader medical space are Aphria Inc. APHA, Illumina, Inc. ILMN and QIAGEN N.V. QGEN.
Aphria’s long-term earnings growth rate is projected to be 24.6%. It currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Illumina’s long-term earnings growth rate is estimated at 11%. The company presently has a Zacks Rank #2.
QIAGEN’s long-term earnings growth rate is estimated at 12.2%. It currently sports a Zacks Rank #1.
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Illumina, Inc. (ILMN) : Free Stock Analysis Report
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