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Here's How Much a $1000 Investment in PerkinElmer Made 10 Years Ago Would Be Worth Today

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How much a stock's price changes over time is a significant driver for most investors. Not only can price performance impact your portfolio, but it can help you compare investment results across sectors and industries as well.

Another thing that can drive investing is the fear of missing out, or FOMO. This particularly applies to tech giants and popular consumer-facing stocks.

What if you'd invested in PerkinElmer (PKI) ten years ago? It may not have been easy to hold on to PKI for all that time, but if you did, how much would your investment be worth today?

PerkinElmer's Business In-Depth

With that in mind, let's take a look at PerkinElmer's main business drivers.

Headquartered in Waltham, MA, PerkinElmer, Inc. provides scientific instruments, consumables, and services to pharmaceutical, biomedical, environmental testing, chemical, and general industrial markets worldwide.

For the Diagnostics market, the company offers products that are used to detect genetic disorders from pre-conception to early childhood. The company also provides digital x-ray flat panel detectors and infectious disease testing solutions. For the Research market, the company offers reagents, liquid handling and detection, and imaging technologies that are used by researchers in the drug discovery process.

In the Discovery & Analytical Solutions (DAS) segment, PerkinElmer has two operating segments – Human Health and Environmental Health. In recent past, the company realigned its business structure. OneSource, the company’s multivendor laboratory service business that serves the life sciences end market, was moved from the Environmental Health segment into the Human Health segment.
 
The Human Health segment focuses on developing diagnostics, tools and applications, which help to detect diseases earlier and more accurately. The Human Health segment serves two end markets: diagnostics and research.

The Environmental Health segment offers products and services that help in producing safer food and consumer products, securing environment and using energy more efficiently. The segment serves three end markets - laboratory services, environmental and Industrial. The company’s environmental solutions help in maintaining the wellbeing of air, water, soil and food. PerkinElmer’s environmental applications help its customers comply with regulatory requirements and maintain industry standards by detecting harmful substances in water, adulterants in food, toxic metals in toys, counterfeits in medicine and many other consumer products.

2020 at a Glance

In 2020, the company posted revenues worth $3.78 billion, up 31.2% on a year-over-year basis. In 2020, Discovery & Analytical Solutions (DAS) revenues totaled $1.72 billion (46% of net revenues) and Diagnostics’ revenues came in at $2.07 billion (54%).

Bottom Line

While anyone can invest, building a lucrative investment portfolio takes research, patience, and a little bit of risk. If you had invested in PerkinElmer ten years ago, you're probably feeling pretty good about your investment today.

According to our calculations, a $1000 investment made in June 2011 would be worth $5,207.94, or a 420.79% gain, as of June 2, 2021. Investors should keep in mind that this return excludes dividends but includes price appreciation.

In comparison, the S&P 500 gained 219.66% and the price of gold went up 19% over the same time frame.

Going forward, analysts are expecting more upside for PKI.

PerkinElmer exited the first quarter on a strong note, wherein both earnings and revenues beat their respective consensus mark. It witnessed robust core segmental performance in the first quarter. Strong growth in Europe and United States is also encouraging. Further, expansion in both gross and operating margins buoys optimism. A raised full-year 2021 outlook is a key highlight. In March 2021, PerkinElmer completed the acquisition of Oxford Immunotec Global Plc, which will enable the company to expand its portfolio of advanced infectious disease testing solutions by including tuberculosis detection product line. Notably, COVID-related products and services contributed $550 million in the first quarter. Quarter-to-date, the stock outperformed its industry. However, PerkinElmer continues to make acquisitions, which increases integration risks.

The stock is up 10.91% over the past four weeks, and no earnings estimate has gone lower in the past two months, compared to 6 higher, for fiscal 2021. The consensus estimate has moved up as well.
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