Luminex (LMNX) Scores a Strong Buy Right Now: Here's How
Based in Austin, TX, Luminex Corporation LMNX develops, manufactures and markets a proprietary technology that simplifies biological testing for the life sciences industry. It has rallied 13.5% over the last three months, ahead of the S&P 500’s 4.1% gain and also better than the Zacks categorized Medical - Instruments sub-industry's gain of 10.9% over the same period.The stock has a market cap of $903.9 million.
With solid growth prospects, this Zacks Rank #1 (Strong Buy) stock is an attractive pick at present.
The company’s estimate revision trend for the current year has also been positive. In the past 60 days, two analysts moved north, with no movement in the opposite direction. The magnitude of estimate revision increased around 37.5% to 55 cents per share over the same time frame.
Let’s find out whether the recent positive trend is a sustainable one.
Luminex has a broad product portfolio that comprises its advanced xMAP, xTAG and MultiCode technology. The company’s large installed instrument base consists of the Luminex 100 (LX100), Luminex 200 (LX200), FlexMap 3D systems and the MAGPIX technology.
Also, Luminex is making noteworthy progress with another major product – the ARIES system – which represents a major revenue opportunity for the company. Luminex is focused on fortifying its position in the infectious disease market with its sample to answer platform – the ARIES system.
In this regard, the launch of several FDA-approved ARIES products, including the Group B Streptococcus (GBS) Assay for antepartum detection earlier this year, is noteworthy. We are also upbeat about the recent FDA approval of Bordetella Assay for direct detection and identification of Bordetella pertussis. In 2016, Luminex’s ARIES Flu A/B & RSV assay got FDA nod. The company also received an Emergency Use Authorization (EUA) approval for its xMAP MultiFLEX Zika RNA Assay the same year.
Meanwhile, in the last reported first quarter, the company revised its 2017 annual revenue guidance to the band of $300–$310 million, reflecting an improvement from the $295–$305 million band.The company reported earnings of 27 cents per share in the first quarter of 2017, reflecting an increase of 3.87% year over year. Revenues in the quarter increased almost 23.5% year over year to $77.9 million.
Other Key Picks
Other top-ranked medical stocks are Align Technology, Inc. ALGN, Inogen, Inc. INGN and Accelerate Diagnostics, Inc. AXDX. Notably, Align Technology and Inogen sport a Zacks Rank #1, while Accelerate Diagnostics carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Align Technology has an expected long-term adjusted earnings growth of almost 24.1%. The stock has added roughly 34.7% over the last three months.
Inogen has a long-term expected earnings growth rate of 17.5%. The stock has gained around 25.3% over the last three months.
Accelerate Diagnostics has an expected long-term adjusted earnings growth of 30%. The stock has added approximately 24.5% over the last three months.
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