Quidel (NASDAQ:QDEL) closed the most recent trading day at $197.49, moving -1.26% from the previous trading session. This move lagged the S&P 500’s daily gain of 0.35%. Elsewhere, the Dow gained 0.23%, while the tech-heavy Nasdaq added 0.26%.
Prior to today’s trading, shares of the medical diagnostics company had gained 10.65% over the past month. This has outpaced the Medical sector’s gain of 5.16% and the S&P 500’s gain of 3.27% in that time.
Investors will be hoping for strength from QDEL as it approaches its next earnings release. On that day, QDEL is projected to report earnings of $9.88 per share, which would represent year-over-year growth of 888%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $798.90 million, up 424.97% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $18.76 per share and revenue of $1.65 billion, which would represent changes of +531.65% and +208.72%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for QDEL. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company’s business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. QDEL is currently sporting a Zacks Rank of #1 (Strong Buy).
Investors should also note QDEL’s current valuation metrics, including its Forward P/E ratio of 10.66. For comparison, its industry has an average Forward P/E of 38.17, which means QDEL is trading at a discount to the group.
We can also see that QDEL currently has a PEG ratio of 0.43. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company’s expected earnings growth rate into account. Medical – Products stocks are, on average, holding a PEG ratio of 3.59 based on yesterday’s closing prices.
The Medical – Products industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 118, which puts it in the top 47% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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