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Here's Why You Should Hold On to PerkinElmer (PKI) Stock Now

Zacks Equity Research
·3 mins read

PerkinElmer, Inc. PKI is likely to gain from a solid product portfolio and a strong guidance for 2020. However, the company is currently facing foreign exchange headwinds.


Shares of the company have lost 20.5% compared with the industry’s 22.1% decline in a year’s time. The current level also compares unfavorably with the S&P 500 index’s 13.4% decline over the same time frame.



This $8.27-billion medical technology company currently has a Zacks Rank #3 (Hold). PerkinElmer’s earnings are expected to grow 10% in the next five years. However, the company has a trailing four-quarter positive earnings surprise of 2.7%, on average.


Let’s take a closer look at the factors working in favor of the company right now.


Product Portfolio & Guidance


PerkinElmer has a comprehensive suite of scientific informatics and software solutions to aggregate data into actionable insights in an automated and scalable way. Some of the major products include the ChemDraw software, Electronic Lab Notebooks, including cloud-based Elements SaaS Offering and enterprise E-Notebook Solutions, along with the TIBCO Spotfire platform for scientific data analytics.

PerkinElmer, Inc. Price and Consensus

PerkinElmer, Inc. Price and Consensus
PerkinElmer, Inc. Price and Consensus

PerkinElmer, Inc. price-consensus-chart | PerkinElmer, Inc. Quote

There has also been a latest development in assays for Zika, Dengue and Chikungunya viruses using the company’s dried blood spot technologies.


In fact, on Mar 25, the company received Emergency Use Authorization from the FDA for its new Coronavirus RT-PCR test. Notably, clinical laboratories that are certified under Clinical Laboratory Improvement Amendments can start utilizing this test kit to detect SARS-CoV-2 (the virus causing COVID-19) immediately.


Furthermore, per the company’s guidance for 2020, adjusted earnings per share (EPS) are expected between $4.50 and $4.60. Also, revenues are anticipated in the range of $3.05-$3.09 billion.




For the first quarter and 2020, the company anticipates foreign exchange headwinds to weigh on its performance to the tune of about $8 million and $12 million, respectively.


Estimates Picture


For 2020, the Zacks Consensus Estimate for revenues is pegged at $3.08 billion, indicating growth of 6.7%. For adjusted EPS, the same stands at $4.53, implying growth of 10.5%.


Key Picks


Some better-ranked companies in the broader medical sector include Stryker Corporation SYK, Accuray Incorporated ARAY and The Cooper Companies COO, each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.


Stryker’s long-term earnings growth is expected at 10.1%.


Accuray’s fiscal fourth-quarter earnings are expected to skyrocket 150%.


Cooper Companies' long-term earnings growth is projected at 10.7%.


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