The genomics industry is involved in designing high-quality treatment procedures for life-threatening diseases like cancer, using genetic components of living beings. Demand for genomics suppliers increases every day, with more people in an increasingly aging population being diagnosed with serious illnesses. During the second half of 2021, genomics-related deals accounted for 5.9% of all deals taking place in the pharmaceutical sector.
Despite high operational costs and logistic hindrances, genomics suppliers continue to register solid revenues and cash flows thanks to the surging demand. The rapid advancements in medical technology and research and development should keep driving the industry’s performance. According to Reports and Data, the global genomics market is expected to grow at a CAGR of 19% by 2030.
Therefore, fundamentally strong genomics supplier stocks Agilent Technologies, Inc. (A) and Bio-Techne Corporation (TECH) could be ideal bets now.
Agilent Technologies, Inc. (A)
A provides application-focused solutions to the life sciences, diagnostics, and applied chemical markets worldwide. Its segments are Life Sciences and Applied Markets; Diagnostics and Genomics; Agilent CrossLab.
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On April 19, 2022, A joined the National Institute for Innovation in Manufacturing to Advance Biomanufacturing (NIIMBL). A’s CEO, Mike McMullen, said, “Agilent has long played a key role in providing trusted answers for the analytical needs of the biopharmaceutical industry. The prominence of biopharmaceuticals coupled with the advent of precision cell and gene biotherapeutics has further spurred the need for innovative measurement tools to help deliver life-saving drugs and diagnostics to patients.”
For the fiscal 2022 first quarter ended January 31, 2022, A’s net revenue increased 8.1% year-over-year to $1.67 billion. The company’s non-GAAP net income came in at $368 million, up 12.2% year-over-year, while its non-GAAP EPS came in at $1.21, up 14.2% year-over-year.
Analysts expect A’s revenue to be $6.38 billion in 2022, representing a 14.5% year-over-year increase. The company’s EPS is also expected to rise 20.6% to $4.62 in 2022. In addition, it has surpassed the consensus EPS estimates in three of the trailing four quarters. The stock has lost 13.8% over the past month to close the last trading session at $119.27.
A’s strong fundamentals are reflected in its POWR Ratings. The stock has an overall B rating, which indicates a Buy in our proprietary rating system. The POWR Ratings assess stocks by 118 different factors, each with its own weighting.
A has a B grade for Growth, Value, Stability, and Quality. It is ranked #3 out of 49 stocks within the Medical - Diagnostics/Research industry. Click here to see the additional POWR Ratings for A (Momentum and Sentiment).
Bio-Techne Corporation (TECH)
TECH and its subsidiaries develop, manufacture, and sell life science reagents, instruments, and services for the research, diagnostics, and bioprocessing markets worldwide. The company operates through two segments- Protein Sciences and Diagnostics and Genomics.
On April 12, 2022, TECH and Cygnus Technologies, part of Maravai LifeSciences (MRVI), announced the Simple Plex™ HEK 293 HCP 3G assay launch for automated process impurity testing. Will Geist, President of TECH’s Protein Sciences Segment, said, “We continue to enjoy the fruits of the Bio-Techne-Cygnus Technologies partnership as it provides the therapeutic development and manufacturing community an automated platform-based approach for HEK 293 host cell impurity testing.”
For fiscal 2022 second quarter ended December 31, 2021, TECH’s net sales came in at $269.28 million, up 20.1% year-over-year. Its net earnings came in at $80.17 million, up 73.3% year-over-year, while its EPS came in at $1.94, up 68.7% year-over-year.
TECH’s revenue is expected to be $1.10 billion in 2022, representing an 18.1% year-over-year rise. The company’s EPS is expected to increase 17.8% to $7.95 in 2022. It surpassed EPS estimates in each of the four trailing quarters. Over the past three months, the stock gained 3.4% to close the last trading session at $379.69.
It’s no surprise that TECH has an overall B rating, which equates to a Buy in our proprietary POWR Ratings system. In addition, it has a B grade for Quality.
TECH is ranked #27 of 395 stocks in the Biotech industry. Click here to see the additional POWR Ratings for TECH (Growth, Value, Momentum, Stability, and Sentiment).
A shares were trading at $117.31 per share on Monday afternoon, down $1.96 (-1.64%). Year-to-date, A has declined -26.31%, versus a -13.85% rise in the benchmark S&P 500 index during the same period.
About the Author: Riddhima Chakraborty
Riddhima is a financial journalist with a passion for analyzing financial instruments. With a master's degree in economics, she helps investors make informed investment decisions through her insightful commentaries.
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