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Forget iSpecimen, Buy These 3 Diagnostic & Research Stocks Instead -Breaking


© Reuters. Forget iSpecimen, Buy These 3 Diagnostic & Research Stocks Instead

The diagnostics & research industry is booming due to the resurgence of COVID-19 cases and increasing chronic disease sufferers. But not everyone in the sector is well-positioned to win over time. iSpecimen, for example (ISPC), is overvalued at its current price and may experience a decline. But we believe fundamentally sound stocks in this space, Quest Diagnostics (DGX), QIAGEN (QGEN), and Global Cord Blood (CO), could be better picks to cash in on the industry’s growth. Read on.Lexington, Mass.-based healthcare technology provider iSpecimen Inc.’s (ISPC) revenue grew 20.8% year-over-year to $2.72 million in its fiscal third quarter ended September 30, 2021. However, the company’s total operating expenses came in at $4.18 million, up 40.5% year-over-year. Its operations loss was $1.46 million compared with $723,000.79 for the same period last year. Furthermore, ISPC’s 50.64% trailing-12-month gross profit margin is 7.7% lower than the 54.64% industry average. Its trailing 12-month CAPEX/Sales ratio of 99.6% is lower than that of the industry average (3.93%). Forward EV/S ratio is also higher at 10.00x than 6.02x, which is 66.1% more than industry average. Additionally, the forward P/S of this stock is 46% more than that 7.23x industry standard. Therefore, it seems prudent to sell the stock immediately.

The diagnostic & research industry is expected to witness an uptrend. Dr. Anthony Fauci recently said that the United States has “the potential to go into a fifth wave” of coronavirus infections amid rising cases and stagnating vaccination rates. This should benefit the diagnostics & research market in the near term. A PR Newswire report states that the Medical Diagnostics Market will grow at $61.56 billion between 2021 and 2025.

Therefore, we think investors that are looking to benefit from the diagnostics & research industry’s growth could invest in quality stocks Quest Diagnostics Incorporated (NYSE:), QIAGEN N.V. (QGEN), and Global Cord Blood Corporation (CO).

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