Should You Add QIAGEN Stock to Your Portfolio for Now?

QIAGEN N.V. QGEN is well-poised to grow in the upcoming quarters, courtesy of substantial investment in research and development (R&D) for the menu expansion of its key platforms. Expanding through partnerships also remains a key part of its growth strategy. Additionally, a favorable solvency adds to the stock’s appeal. Yet, the ongoing macroeconomic volatilities and fierce competitive landscape pose business risks for QIAGEN. 

In the past year, this Zacks Rank #2 (Buy) stock has gained 8.9% against the 13.3% decline of the industry. However, the S&P 500 Composite rose 10.8% in the said time frame.

The renowned global provider of sample and assay technologies has a market capitalization of $10.39 billion. QIAGEN has an earnings yield of 5%, well ahead of the industry’s -28.5% yield. QGEN’s earnings surpassed estimates in three of the trailing four quarters and missed on one occasion, delivering an average surprise of 4.9%.

Let’s delve deeper.

Upsides for QGEN Stock

Progress With Test Menu Expansion: QIAGEN is building momentum in the U.S. syndromic testing market, with six regulatory clearances of panels for use on QIAstat-Dx within the last 10 months, including the QIAstat-Dx Meningitis/Encephalitis Panel and QIAstat-Dx Respiratory Panel Mini. The latest FDA-approved QIAstat-Dx Gastrointestinal Panel 2 Mini B delivers rapid detection of five common bacterial pathogens for outpatient use, leading to fast and informed treatment decisions. Building on the success in syndromic testing, QIAGEN is also expanding the ecosystem for QIAstat into precision medicine, signing a number of pharma collaborations to use this technology in precision medicine applications.

In September 2024, the company introduced QIAcuity Diagnostic, bringing digital PCR into the clinical world. QIAGEN expanded the assay menu by launching more than 100 new digital PCR assays and is on track to add 100 more in 2025, now focusing on cell and gene therapy and pathogen research. Moreover, the company is planning to upgrade QIAsymphony Connect with two new product launches in the second half of 2025. Additionally, a host of new kits are getting ready for launch, including new kits for free circulating DNA and microbiome target isolation

Strategic Collaborations to Drive Growth: QIAGEN has forged strategic alliances as well as marketing and distribution arrangements to support the development and distribution of existing and potential products. In 2024, the company expanded on these partnerships with new agreements, such as a collaboration with Eli Lilly to develop an in-vitro diagnostic panel for detecting APOE genotypes and with AstraZeneca to develop and commercialize companion diagnostics for complex chronic diseases based on the QIAstat-Dx platform.

Additionally, QIAGEN and Myriad Genetics teamed up to develop a next-generation sequencing test to advance personalized medicine in multiple solid tumor types, including ovarian cancer. Other partnerships include one with McGill University, strengthening QIAGEN’s presence in the North American $1.8 billion microbiome research market. Further, QIAGEN and Penn State University formed a unique collaboration to create a shared research and education facility for the fast-developing microbiome sciences. The company started to enter the growth markets in the Middle East, focusing on advancing health and building strong partnerships with local stakeholders.

Favorable Solvency: QIAGEN demonstrated strong financial stability, exiting the first quarter of 2025 with cash and cash equivalents of $638.8 million and a current debt of $56 million. The long-term debt (net of the current portion) was $1.35 billion compared with $1.34 billion at the end of the fourth quarter of 2024.

What Concerns QGEN Stock?

Macro Headwinds Hamper Global Sales: QIAGEN’s international footprint makes it vulnerable to macroeconomic and geopolitical risks, including economic downturns, trade restrictions, tariffs and evolving regulatory frameworks. Challenging macro trends in China have continued to persist for several quarters now, restricting the overall Asia Pacific sales growth. In addition, a sluggish spending environment for instruments, including large-scale ones, continues to impact players like QIAGEN, which works with pharmaceutical companies in the life science field.

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. According to QIAGEN, 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 2025 earnings per share has edged up 0.8% to $2.34.

The Zacks Consensus Estimate for the company’s 2025 revenues is pegged at $2.34 billion. This suggests a 7.3% increase from the year-ago reported number.

Other Key Picks

Some other top-ranked stocks in the broader medical space are Phibro Animal Health PAHC, Hims & Hers Health HIMS and Cencora COR.

Phibro Animal Health has an estimated long-term earnings growth rate of 26% compared with the industry’s 15.7%. Its earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 30.6%. Its shares have rallied 42.4% compared with the industry’s 10.6% growth in the past year.

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

Hims & Hers Health, currently carrying a Zacks Rank #2, has an earnings yield of 1.3% against the industry’s -10.1% yield. Shares of the company have surged 140.7% compared with the industry’s 39.8% gain. HIMS’ earnings surpassed estimates in two of the trailing four quarters, matched on one occasion and missed on another, the average surprise being 2.8%.

Cencora, carrying a Zacks Rank #2 at present, has an earnings yield of 5.4% compared with the industry’s 3.8%. Shares of the company have rallied 26.9% against the industry’s 14.3% decline. COR’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 6%.

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This article originally published on Zacks Investment Research (zacks.com).

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