QIAGEN N.V.’s QGEN fourth-quarter performance was driven by solid potential in molecular diagnostics. The company continues to progress with its test menu expansion, building a solid foundation to achieve its long-term targets. Yet, adverse macroeconomic impacts and fierce rivalry pose risks for QIAGEN’s operations.
In the past year, this Zacks Rank #3 (Hold) company’s shares have lost 15.3% compared with the industry's 8.8% decline. Meanwhile, the S&P 500 composite has risen 10.6% in this time frame.
The renowned global provider of sample and assay technologies has a market capitalization of $8.48 billion. QGEN’s earnings surpassed estimates in three of the trailing four quarters and missed on one occasion, delivering an average surprise of 3.57%.
Upsides for QIAGEN Stock
Huge Potential in Molecular Diagnostics: The molecular diagnostics space is gaining share in the global market while catering to the rapidly growing treatment areas of oncology, infectious diseases and immune monitoring. QIAGEN offers one of the broadest portfolios of molecular technologies for healthcare.
In the fourth quarter of 2024, sales in the Diagnostic Solutions product group grew 10% year over year at CER, excluding NeuMoDx. The QuantiFERON test delivered another quarter of sales above $100 million, supported by robust demand in all regions. The company sees strong growth opportunities for QuantiFERON, as only 40% of the global latent TB (tuberculosis) testing market has converted to blood-based testing.
Recent American guidelines allowing its use in children of all ages have created additional opportunities for conversion from the skin test. Meanwhile, QIAstat-Dx grew 25% at CER in the fourth quarter, driven by double-digit growth in both consumables and instrument sales.
Progress With Test Menu Expansion: To support internal growth, QIAGEN heavily invests in research and development (R&D) for the menu expansion of its key platforms. R&D expenditures represented 9.3% of the 2024 fourth-quarter sales. In 2024, QIAstat Dx had more than 660 new system placements. It posted 25% growth at CER in the fourth quarter. With FDA clearances for four new syndromic testing panels, QIAGEN bolstered its presence in the U.S. market with panels covering respiratory, gastrointestinal and meningitis/encephalitis condition detections.
In QIAcuity, the company introduced QIAcuity Diagnostic, bringing digital PCR into the clinical world. QIAGEN expanded the assay menu by launching more than 100 new digital PCR assays, focusing on cell and gene therapy and pathogen research.
Downsides for QIAGEN
Foreign Exchange Uncertainties: Recording more than 50% of its revenues from the international market, QIAGEN is highly exposed to the risk of foreign currency movement. The situation may worsen with the strengthening of the domestic currency against high-focus nations. Any unanticipated currency headwind in high-focus markets may drag the top and bottom lines further in the future. QIAGEN forecasts a sales headwind of about two percentage points for 2025, which is expected to reduce adjusted EPS by 2-3 cents.
Zacks Investment Research
Image Source: Zacks Investment Research
Competitive Headwinds: The company is facing increasing competition from firms that provide competitive pre-analytical solutions and other products used by QIAGEN customers. According to QGEN, customers in the market for pre-analytical sample and assay technologies display significant loyalty to their initial supplier of a particular product. As a result, it may not be easy to convert customers who have purchased products from the company’s competitors.
QGEN Stock Estimate Trend
In the past 30 days, the Zacks Consensus Estimate for QIAGEN’s 2025 earnings per share has moved south 0.9% at $2.26.
The Zacks Consensus Estimate for the company’s 2025 revenues is pegged at $2.02 billion, suggesting an increase of 2.1% from the year-ago reported number.
Key Picks
Some better-ranked stocks in the broader medical space are Phibro Animal Health PAHC, Boston Scientific BSX and Cardinal Health CAH.
Phibro Animal Health has an estimated fiscal 2025 earnings growth rate of 78.3% compared with the industry’s 8.5%. Its earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 27.06%. Its shares have surged 68.2% compared with the industry’s 12.5% growth in the past year.
PAHC sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Boston Scientific, carrying a Zacks Rank #2 (Buy) at present, has an earnings yield of 2.7% compared with the industry’s 1.5%. Shares of the company have rallied 44.5% compared with the industry’s 8.5% growth. BSX’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 8.25%.
Cardinal Health, carrying a Zacks Rank #2 at present, has an estimated long-term earnings growth rate of 10.7% compared with the industry’s 9.5%. Shares of the company have rallied 7.5% against the industry’s 3.6% decline. CAH’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 9.64%.
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
