We came across a bullish thesis on Bio-Rad Laboratories, Inc. (BIO) on Substack by Stock Analysis Compilation. In this article, we will summarize the bulls’ thesis on BIO. Bio-Rad Laboratories, Inc. (BIO)’s share was trading at $323.69 as of Nov 20th. BIO’s forward P/E was 28.49 according to Yahoo Finance.
A research laboratory showing advanced diagnostic equipment used to protect public health.
Bio-Rad Laboratories (BIO) is a leading manufacturer and developer of laboratory equipment and biological testing solutions, with a robust global footprint and diversified revenue streams. The United States accounts for 42% of its revenue, followed by Europe at 31%, Asia at 21%, and other regions at 6%. Its customer base spans hospital labs (34% of revenue), reference labs (11%), transfusion labs (10%), academic and government institutions (21%), biopharma (15%), and applied markets (9%). This diversity ensures stability and resilience across economic cycles. The company benefits from a solid financial profile, characterized by rising operating margins and high levels of recurring revenue. Notably, Bio-Rad derives 80% of its sales from products in which it holds dominant market share, underscoring its leadership in the industry.
With innovative product offerings in a growing global marketplace, Bio-Rad is well-positioned for long-term growth. Its strategic focus on high-margin segments and its ability to leverage its market leadership make it a compelling investment opportunity. Ariel Investments highlights Bio-Rad as a quintessential example of its investment philosophy, citing the company’s strong market position and consistent execution. These factors, combined with its broad geographical reach and customer diversity, position Bio-Rad for sustained performance in a competitive industry.
Bio-Rad Laboratories, Inc. (BIO) is not on our list of the 31 Most Popular Stocks Among Hedge Funds. As per our database, 38 hedge fund portfolios held BIO at the end of the third quarter which was 29 in the previous quarter. While we acknowledge the risk and potential of BIO as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than BIO but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article was originally published at Insider Monkey.