Should You Continue to Hold Bio-Rad Stock in Your Portfolio?

Core Insights - Bio-Rad Laboratories, Inc. is well-positioned in the growing digital PCR market with its QX600 Droplet Digital PCR platform, while its clinical diagnostics business is gaining momentum and expanding into new molecular diagnostics areas [1][4] - The company has faced challenges in its Biopharma segment and margin performance due to economic pressures [1][12] Group 1: Company Performance - Bio-Rad's shares have decreased by 4.8% over the past year, contrasting with the industry's growth of 24.7% and the S&P 500's rise of 33.7% [2] - The company has a market capitalization of $893.9 million and has surpassed earnings estimates in three of the last four quarters, with an average surprise of 4.1% [2] Group 2: Key Drivers - The QX600 Droplet ddPCR platform is robust and growing, with a focus on biopharma and new product development in cell biology [4] - Bio-Rad is advancing its strategy through agreements with Allegheny Health Network and Oncocyte Corporation, enhancing its clinical diagnostic applications [5] - The clinical diagnostics segment is experiencing growth, particularly in the diabetes franchise and immunohematology, with new product launches like the IH-500 instrument [6][7] Group 3: International Expansion - Bio-Rad operates in over 35 countries, with optimism about market conditions improving in late 2024 and into 2025 despite current softness in the APAC region [8][9] Group 4: Challenges - The Biopharma segment has shown weakness since 2023, linked to funding constraints in the pharmaceutical industry, impacting sales in Asia [10][11] - Economic factors such as inflation and increased costs have pressured Bio-Rad's margins, with a noted unfavorable product mix affecting gross margins [12] Group 5: Financial Estimates - The Zacks Consensus Estimate for Bio-Rad's 2024 earnings per share remains at $10.31, while revenue estimates are projected at $2.59 billion, indicating a 3% decline from the previous year [13]