- Oops!Something went wrong.Please try again later.
For most investors, how much a stock's price changes over time is important. This factor can impact your investment portfolio as well as help you compare investment results across sectors and industries.
FOMO, or the fear of missing out, also plays a role in investing, particularly with 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%).
Putting together a successful investment portfolio takes a combination of research, patience, and a little bit of risk. For PerkinElmer, if you bought shares a decade ago, you're likely feeling really good about your investment today.
A $1000 investment made in May 2011 would be worth $5,118, or a gain of 411.80%, as of May 17, 2021, according to our calculations. This return excludes dividends but includes price appreciation.
In comparison, the S&P 500 gained 212% and the price of gold went up 19.31% over the same time frame.
Analysts are anticipating 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. The stock outperformed its industry in a year's time. However, PerkinElmer continues to make acquisitions, which increases integration risks.
Over the past four weeks, shares have rallied 6.63%, and there have been 6 higher earnings estimate revisions in the past two months for fiscal 2021 compared to none lower. The consensus estimate has moved up as well.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
PerkinElmer, Inc. (PKI) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research