Is Quanterix Stock A Buy? Quanterix seeks to uncover the biology behind infectious diseases and provide better management of health overall. Tying these opposite spectrum ends together is the endgoal– but is it a tight knot or one that could quickly unravel when it comes to Quanterix stock?
And at the heart of the matter – shouldn’t any healthcare stock be booming right now, given the global pandemic and the race for a cure, vaccine, or both? Or are investors keeping their wallets in their pockets for now?
Will The Future of Healthcare = Quanterix?
Quanterix is the self-proclaimed “future of healthcare”. And as a global pandemic sweeps the world, few stocks seize more attention from investors than those aiming to solve the problems of infections disease.
It’s a good time for any healthcare companies right now, whether the company focus is on vaccination against the coronavirus or other forms of disease that have been with the human population much longer, such as Alzheimer’s.
Quanterix’s primary focus is on helping healthcare providers by providing cutting-edge scientific advancements in treatment, care, and diagnosis through precise research. The company specializes in oncology, cardiology, infectious diseases, and more.
Is Quanterix Stock a Buy?
We’ll get to the nuts and bolts of financials in just a moment but first let’s look at Quanterix share price which has been a rollercoaster to say the least.
Quanterix saw its highest stock price a little over one year ago. In July 2019, the stock was trading at $32.27 per share. The stock’s lowest trading price occurred on March 18, 2020, when shares in nearly every industry took a hard pummel due to the pandemic.
While COVID-19 is certainly to blame for the plummet, healthcare stocks immediately bounced back – and Quanterix is no different.
On March 18, the stock price was just over $11 – on March 19, it regained momentum and ended the day at $15.66 per share. Since then, it has fluctuated ever so slightly and, as of July 27, has almost returned to its pre-pandemic highs at $27.13.
Still, the company has not broken out technically to all time highs which is a concern for stock market technicians.
Risks of Investing in Quanterix
Investors had a great week back in May. Stock prices rose 6% upon releasing of Quanterix’s Q1 report. It was a solid showing with over $16 million in revenue, which is 18% higher than analysts expected.
But it’s important to be aware of the risks involved in investing in a healthcare company right now, and Quanterix specifically. You might not think there could be any risk investing in healthcare companies in the midst of a pandemic but consider the following.
After the Q1 report, analysts projected 2020 revenues around $59.6 million, which is similar to Q4’s reports for annual revenue. But, due to the pandemic, Quanterix’s losses look to increase just a bit, less than $2 per share.
Prior to the Q1 report, it looked like revenue would be greater ($64.6 million) and losses would be lesser ($1.55 per share). With losses increasing and revenues shrinking, this is a company with fundamentals that are not yet rock solid.
Projections left the average target price of $33 per share roughly unchanged, which could signify that, even though earnings were weaker, it’s not expected to impact valuation over the long term.
Now, all this said, healthcare is a generally robust field with high-rolling players – healthcare stocks range from around a hundred bucks per share to nearly a thousand per share.
So, for Quanterix to be reflecting higher than expected losses, lower than expected revenue, and to have a share price lower than the average lower end of the spectrum – well, this is a great first-timer stock if you have limited funds but this is probably a stock more experienced investors will shy away from or sell if they already hold shares.
Will Quanterix Competitors Beat It?
Ayoxxa is a privately held company based in Germany. Through three rounds of funding the company was able to secure over $11 million for its 5-member team.
The company provides a lab analysis service to help hospitals and other laboratory facilities analyze specimens and return faster results.
Caprion BioSciences is also a privately held company. Caprion has laboratory facilities in nine locations, including the United States, Canada, and China.
The company is a leader in biomarker identification and currently offers COVID-19 testing capabilities at the molecular level, in addition to other services, such as the expansion of proprietary biomarker identification capabilities.
Merck is headquartered in Germany and is a publicly traded pharmaceutical company. As of Q4 2019, Merck’s revenue equaled 16.1 million Euro, or $18.88 billion USD. The company provides medications, vaccines, and other biological treatments.
Quanterix Stock Forecast – The Bottom Line
As with any investment vehicle, it’s best to know your limits. Weighing your risk and reward has much to do with your personal financial situation, which is highly subjective to each individual.
If you have the funds to take a risk, you might want to ride the wave with Quanterix, but if not – save your investment funds for a more promising stock.
The author has no position in any of the stocks mentioned. Financhill has a disclosure policy. This post may contain affiliate links or links from our sponsors.