QIAGEN’s QGEN business is expected to get a boost from its growing molecular diagnostic market, expanded test menu and growth-driving strategic collaborations. Yet, a challenging macro environment and an intense competitive market may dent its results of operations. The stock carries a Zacks Rank #3 (Hold) currently.

Factors Driving Growth for QGEN Stock

QIAGEN offers one of the broadest portfolios of molecular technologies for healthcare. The range of assays for diseases and biomarkers speeds up and simplifies laboratory workflow and standardizes many lab procedures.

The company has established itself as a preferred partner to co-develop companion diagnostics paired with targeted drugs, together with a rich pipeline of molecular tests transforming the treatment of cancer and other diseases. QGEN has more than 30 master collaboration agreements with pharmaceutical industry customers, some with multiple co-development projects.

In the third quarter of 2024, sales in the Diagnostic Solutions product group grew 10% from the year-ago period, driven by solid gains in consumables sales. The QuantiFERON test delivered its sixth consecutive quarter of sales above $100 million, supported by solid demand in all regions from conversion gains against the tuberculin skin test. In the PreAnalytiX joint venture with Becton, Dickinson and Company, the newly launched PAXgene Urine Liquid Biopsy kit addresses critical needs on how to collect, process and store DNA from urine samples for analysis.

To support internal growth, including menu expansion of its key platforms, QIAGEN heavily invests in research and development. R&D expenditures represented 8.9% of third-quarter sales, with anticipation of a further rise in the coming months as the company pursues regulatory approvals of certain assays or instruments. QIAGEN marked several important product launches and key milestones, which position it well to meet its 2028 goals. Particularly, QIAstat drove 40% CER sales growth from increasing demand worldwide and more than 150 placements of instruments.

QIAGEN N.V. Price

QIAGEN N.V. price | QIAGEN N.V. Quote

In terms of strategic collaborations, in September 2024, the company announced a collaboration with Eli Lilly and Company to support the development of QIAstat-Dx in-vitro diagnostic (IVD) to detect APOE genotypes, which can play a key role in Alzheimer’s disease diagnosis. The company also extended its strategic partnership with Bio-Manguinhos/Fiocruz to enhance malaria and dengue detection in Brazil’s national screening programs.

Over the past three months, the stock has gained 6.7% in a year against the industry’s 12.2% decline. With the company strategically expanding through innovation and synergistic deals, as well as expanding its business footprint, we expect the stock to continue its upward movement in the coming days.

Factors Weighing on QIAGEN Stock

QIAGEN currently markets products in more than 100 countries. Its international operations are subject to a variety of risks arising from the economy, political outlook, language and cultural barriers in the countries it operates. In the quarter under review, sales in the Asia Pacific, Japan and the Rest of World region declined 2% year over year, reflecting challenging macro demand trends in China.

Recording more than 50% of its revenues from the international market, QIAGEN is highly exposed to the risk of foreign currency movement. Foreign currency transactions in the third quarter of 2024 resulted in net losses of $1.1 million. The company continues to expect currency movements against the U.S. dollar to have a negative impact on full-year net sales of about 1 percentage point and an adverse impact of about 2 cents per share on adjusted EPS results.

Considering QIAGEN’s huge gamut of services, the company is also susceptible to competitive headwinds. The company is facing increasing competition from firms that provide competitive pre-analytical solutions and other products used by QIAGEN’s customers. The markets for some of the company’s products are very competitive and price-sensitive.

Other product suppliers may have significant advantages in terms of financial, operational, sales and marketing resources and experience in research and development. According to the company, 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.

Key Picks

Some better-ranked stocks in the broader medical space are Veracyte VCYT, ResMed RMD and Omnicell OMCL.

Veracyte, carrying a Zacks Rank #1 (Strong Buy) at present, has an estimated earnings growth rate of 65.8% for 2025. You can see the complete list of today’s Zacks #1 Rank stocks here.

VCYT’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 520.58%. Veracyte’s shares have risen 49.2% in the past year compared with the industry’s 5.5% growth.

ResMed, carrying a Zacks Rank #2 (Buy) at present, has an estimated growth rate of 21.1% for 2025. RMD’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 6.41%. Its shares have risen 34.1% compared with the industry’s 7.7% growth in the past year.

Omnicell, carrying a Zacks Rank #2 at present, has an estimated earnings growth rate of 72.7% for fourth-quarter 2024. Its earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 121.74%. OMCL’s shares have risen 26.4% against the industry’s 15.7% decline in the past year.

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