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Here’s Why Investors Should Buy Luminex (LMNX) Right Now

Zacks

Luminex Corporation LMNX has been on a healthy growth trajectory, of late. It has rallied 10% in six months’ time, ahead of the S&P 500’s 4.8% gain. The stock has a market cap of $882.30 million.

With solid prospects, this Zacks Rank #2 (Buy) stock is an attractive pick now.

The company’s estimate revision trend for the current year has also been positive. In the past 30 days, one estimate has gone upward for Luminex, while none moving downward during the same time period. The Zacks Consensus Estimate moved up to 40 cents from 36 cents over the same time frame.


Let’s find out whether the recent positive trend is a sustainable one.

Luminex’s second quarter witnessed strong top-line performance, solid cash flow and soaring profits. The company’s Assay business is likely to be its key growth driver over the long term. Notably, revenues in the quarter increased as high as 19.2% year over year.

Further, Luminex reiterated its 2017 annual revenue guidance to the band of $300-$310 million. This depicts year-over-year growth of 11-14%.

Following a strong revenue performance in the second quarter, Luminex recently announced plans to collaborate with Sutter Health, in a bid to bolster its molecular diagnostic testing portfolio. This collaboration is anticipated to enhance the company’s patient care techniques, especially in cases of Cystic Fibrosis, gastrointestinal illness and respiratory tract infections.

Also, late in July, Luminex received the FDA clearance for the ARIES C. difficile Assay. This is a moderate complexity, sample to answer test for rapid detection of C. difficile.

However, stiff competition in the Life-sciences industry, stretched valuation and reimbursement issues are challenges for the stock.

Other Key Picks

Other top-ranked stocks in the medical sector are Edwards Lifesciences Corporation EW, Lantheus Holdings, Inc. LNTH and IDEXX Laboratories, Inc. IDXX. Edwards Lifesciences sports a Zacks Rank #1 (Strong Buy), while Lantheus Holdings and IDEXX carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Edwards Lifesciences has a long-term expected earnings growth rate of 15.2%. The stock has rallied roughly 19% over the last six months.

Lantheus Holdings has a long-term expected earnings growth rate of 12.5%. The stock has gained 39.4% in six months’ time.

IDEXX has a long-term expected earnings growth rate of 19.8%. The stock has gained around 45.1% over the last year.

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