Here's Why You Should Retain QuidelOrtho (QDEL) Stock for Now

Core Viewpoint - QuidelOrtho Corporation is positioned for growth due to its strong product portfolio and solid first-quarter 2024 performance, although it faces challenges from data security threats and reimbursement policies [1][2]. Company Performance - Over the past year, QuidelOrtho's stock has declined by 60%, while the industry saw a 2.2% decline and the S&P 500 grew by 23% [2]. - The company has a market capitalization of $2.32 billion and an earnings yield of 5.45%, significantly higher than the industry's 0.95% [2]. - QuidelOrtho's earnings have exceeded the Zacks Consensus Estimate in three of the last four quarters, with an average surprise of 16.1% [2]. Product Portfolio - QuidelOrtho offers a diverse range of diagnostic testing solutions, including Sofia and Sofia 2 Analyzers, QuickVue, InflammaDry, and AdenoPlus products [3]. - The recent addition of the ARK Fentanyl II Assay is expected to enhance the company's Labs business by meeting the demand for opioid testing [4]. - The FDA 510(k) clearance for the QuickVue COVID-19 test allows for its use in home and medical settings, expanding its market reach [5]. - Health Canada's approval for the Triage PLGF test is anticipated to boost the Point of Care business by addressing maternal and fetal complications [6]. Financial Results - In Q1 2024, QuidelOrtho's earnings and revenues surpassed the Zacks Consensus Estimate, with growth in total revenues excluding COVID-19 impacts [7]. - The company experienced revenue growth in its Labs segment and positive trends in regions like China and EMEA, excluding COVID-19 revenues [7]. Research and Development - QuidelOrtho plans to continue investing in R&D to develop new products and services, which is crucial for long-term growth and customer retention [10]. Challenges - The reliance on third-party reimbursement policies poses a risk, as inadequate reimbursement could affect the adoption of QuidelOrtho's products by healthcare providers [8]. - Data security threats remain a concern, as the company's complex IT systems may face challenges in meeting business needs [11]. Estimate Trends - The Zacks Consensus Estimate for QuidelOrtho's second-quarter 2023 revenues is projected at $617.3 million, reflecting a 7.2% decline from the previous year [9]. - The earnings estimate for 2024 has remained stable at $1.89 per share over the past 60 days [12].