Broker Recommendation 20230220: BIO
(2023-02-20 07:47:30)
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*One Stock Before the Bell*
*Bio-Rad Laboratories (NYSE: BIO)*
$483.23 (14.92% YTD)
Bio-Rad manufactures and sells life science research and clinical diagnostics products. It operates in 2 main segments- *Life Science* which focuses on instruments and apparatuses used in labs; as well as *Clinical Diagnostics* which makes products used in blood and tissue testing. A *majority of revenue is recurring* as the firm's clients require *standardization for their experiments and test results*. It also has a *diversified customer base* with no single customer accounting for more than 2% of revenue.
*Q4 EPS* grew by 3.12% YoY, led by *10.13% revenue growth* in the Life Science segment. Bio-Rad has a *strong pipeline of products currently in development* to support long-term growth. The stock looks undervalued at a *blended forward P/E ratio of 30.4x*, a *31% discount* to its 5Y average P/E.