Reasons to Retain QuidelOrtho Stock in Your Portfolio for Now

Core Viewpoint - QuidelOrtho Corporation (QDEL) is positioned for growth due to its strong product portfolio and solid performance in the first half of 2024, despite facing challenges from data security threats and reimbursement policies [1][2]. Company Performance - QuidelOrtho has experienced a year-to-date loss of 42.6%, contrasting with a 12.4% growth in the industry and an 18.5% increase in the S&P 500 [2]. - The company has a market capitalization of $2.84 billion and an earnings yield of 4.3%, significantly higher than the industry's 0.7% [2]. - Earnings have surpassed the Zacks Consensus Estimate in three of the last four quarters, with an average surprise of 31.73% [2]. Product Portfolio - QuidelOrtho's product offerings include the Sofia and Sofia 2 Analyzers, QuickVue, InflammaDry, and AdenoPlus, catering to both professional and over-the-counter markets [4]. - The recent addition of the ARK Fentanyl II Assay is expected to enhance the Labs business unit, addressing the critical demand for opioid testing [5]. - The FDA 510(k) clearance for the QuickVue COVID-19 test allows for its use in home and medical settings, further expanding the product's market [6]. - Health Canada's approval for the Triage PLGF test is anticipated to boost the Point of Care business by detecting pregnancy-related complications [7]. Research and Development - The company emphasizes continued investment in R&D to foster long-term growth and innovation, focusing on next-generation platforms and assays [8]. Financial Results - QuidelOrtho's earnings and revenues exceeded the Zacks Consensus Estimate in the first two quarters of 2024, with growth observed in total revenues excluding COVID-19 impacts [9]. - Revenue growth was noted in the Labs segment and in regions outside of China, excluding COVID-19 revenues, with strong performance in the EMEA region [9]. Challenges - Data security threats pose a risk as the company relies on complex IT systems for information management, which may require costly upgrades [10]. - Third-party reimbursement policies could impact the usage of QuidelOrtho's products, as healthcare providers depend on adequate reimbursements from insurers [11]. Estimate Trends - The Zacks Consensus Estimate for QuidelOrtho's earnings for 2024 remains stable at $1.80 per share, while the estimate for third-quarter 2024 revenues is projected at $648.2 million, reflecting a 12.9% decline from the previous year [12].