QIAGEN N.V.’s QGEN long-term business strategy focuses on forming partnerships for the development, commercialization, marketing and distribution of existing and future products. The company sees significant opportunities for NGS (next-generation sequencing) to deliver on the vision of precision medicine. To support internal growth, QIAGEN heavily invests in research and development for the menu expansion of its key platforms. Yet, adverse macroeconomic impacts and fierce rivalry pose risks for QIAGEN’s operations.

In the past year, this Zacks Rank #3 (Hold) stock has fallen 2.3% compared with the industry's 11.3% decrease. Meanwhile, the S&P 500 composite has risen 24.2% in this time frame.

The renowned global provider of sample and assay technologies has a market capitalization of $10.30 billion. QGEN’s earnings surpassed estimates in three of the trailing four quarters and missed on one occasion, delivering an average surprise of 3.5%.

Upsides for QIAGEN Stock

Strategic Collaborations to Drive Growth: In September 2024, QIAGEN announced a collaboration with Eli Lilly and Company to support the development of a QIAstat-Dx in-vitro diagnostic (IVD) to detect APOE genotypes, which can play a key role in Alzheimer’s disease diagnosis. The partnership represents a significant milestone as the QIAstat-Dx panel will be the first commercially available IVD for APOE genotyping. QIAGEN has named Bode Technology its exclusive global commercial partner for the GEDmatch PRO genealogy database, which is used to assist police and forensic teams with investigative comparisons of genetic data.

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The company also extended its strategic partnership with Bio-Manguinhos/Fiocruz to enhance malaria and dengue detection in Brazil’s national screening programs. Another agreement expands collaboration with AstraZeneca beyond oncology to develop and commercialize CDx in chronic diseases. Earlier this year, QIAGEN collaborated with Myriad Genetics to develop a globally distributable kit-based test for analyzing the Homologous Recombination Deficiency (“HRD”) status.

Solid NGS Platform Prospects: Leveraging its position as one of the top 3 providers of human identification solutions, including sample preparation and PCR kits, QIAGEN expanded into NGS-based applications. The company’s Genomics/NGS portfolio has witnessed robust revenue growth over the past few quarters and, most recently, posted flat year-over-year growth in the third quarter of 2024. Sales of universal kits, used to prepare samples for processing on sequencers, showed improving trends.

Moreover, QIAGEN’s partnership with Element Biosciences to offer NGS workflow on their AVITI System aligns with its strategy to provide platform-agnostic NGS consumable and bioinformatics solutions. The company is also continuously integrating AI technology into the QDI portfolio. In June 2024, QIAGEN introduced a new version of clinical decision support software, QIAGEN Clinical Insight Interpret (QCI Interpret), to bring significant performance and scalability enhancements for high-throughput NGS labs moving to larger test panels and higher test volumes.

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. In September 2024, the QIAstat-Dx syndromic testing systems and associated assays received CE-marking under the European Union's new In-Vitro Diagnostic Medical Devices Regulation. The company made significant strides in the QIAcuity digital PCR system, including the addition of 100 new validated assays in areas such as cancer research, inherited genetic disorders and infectious disease surveillance.

QIAGEN can now offer more than 2,400 different high-quality assays developed through its online GeneGlobe portal. Following the FDA’s approval in September, the company has started the placements of QIAcuityDx, a four-plate version designed specifically for clinical customers, with an initial focus on oncology. Moreover, the recent expansion of the U.S. test menu boosts QIAGEN’s confidence in exceeding the 2024 sales target of at least $100 million.

Downsides for QIAGEN Stock

Macro Headwinds Hamper Global Sales: QIAGEN’s international operations are subject to a variety of risks arising from the economy, political outlook, and language and cultural barriers in the countries in which it operates. In many of these emerging markets, economies may be dependent on only a few products and are subject to significant fluctuations, weak legal systems that may affect the ability to enforce contractual rights, exchange controls, unstable governments, and privatization or other government actions affecting the flow of goods and currency.

Competitive Headwinds: The company is facing increasing competition from firms that provide competitive pre-analytical solutions and other products used by QIAGEN customers. The markets for some of the products are very competitive and price-sensitive. Product suppliers may have significant advantages in terms of financial, operational, sales and marketing resources and experience in research and development. According to QGEN, customers in the market for pre-analytical sample technologies 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 competitors.

QGEN Stock Estimate Trend

In the past 30 days, the Zacks Consensus Estimate for QIAGEN’s 2024 earnings per share has remained constant at $2.18. 

The Zacks Consensus Estimate for the company’s 2024 revenues is pegged at $1.98 billion. This suggests an increase of 0.6% from the year-ago reported number.

Key Picks

Some better-ranked stocks in the broader medical space are Haemonetics HAE, Insulet PODD and Phibro Animal Health PAHC.

Haemonetics has an earnings yield of 5.41% compared with the industry’s 1.75%. Haemonetics’ earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters and missed on one occasion, the average surprise being 2.82%. Its shares have decreased 10.7% against the industry’s 16.5% growth in the past year.

HAE carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Insulet, carrying a Zacks Rank #2 at present, has a long-term estimated earnings growth rate of 20.3%. Shares of the company have surged 45.2% compared with the industry’s 16.5% growth. PODD’s earnings surpassed estimates in three of the trailing four quarters and missed on one occasion, the average surprise being 52.4%.

Phibro Animal Health, carrying a Zacks Rank #2 at present, has an estimated earnings growth rate of 35.3% for fiscal 2025 compared with the industry’s 11.1%. Shares of the company have surged 102.6% compared with the industry’s 16.5% growth over the past year. PAHC’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 25.47%.

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