Luminex (LMNX) At 52-Week High: What's Driving The Stock?

Share price of Luminex Corporation (NASDAQ:LMNX) scaled a new 52-week high of $22.42 on Nov 22, closing nominally lower at $21.69. The company has gained 14.8% in the last three months, much higher than the S&P 500’s gain of 6.6%. Luminex has also surpassed the broader industry’s 7.1% gain. The stock has a market cap of $955.54 million.

Further, Luminex’s estimate revision trend for the current year is favorable. In the past 30 days, four estimates moved up while one moved down. Estimates were up from 40 cents per share to 49 cents.

The company also has a trailing four-quarter average positive earnings surprise of 87.9%. Its long-term growth of 16.3% holds promise.

Luminex Corporation Price and Consensus

Luminex Corporation Price and Consensus | Luminex Corporation Quote

The company’s current-year earnings growth is projected to be 43.4%, higher than 16.2% for the broader industry and 22.7% for the S&P 500.

Growth Drivers

Luminex exited the third quarter of 2017 on a solid note. Earnings increased 216.7% year over year and revenues rose almost 4.1%. The third quarter saw solid cash flow as well as profits. Further, the expansion in operating margin buoys optimism. Also, Luminex’s reiterated 2017 annual revenue guidance is encouraging.

The company also witnessed favorable tidings at the regulatory front. In this regard,the ARIES Group A Strep Assay — a moderate complexity, sample-to-answer test for the direct detection of Streptococcus pyogenes from throat swab specimen using the ARIES System — recently received FDA clearance.

Zacks Rank & Other Key Picks

Luminex carries a Zacks Rank #2 (Buy).

A few other top-ranked medical stocks are PetMed Express, Inc. (NASDAQ:PETS) , Align Technology, Inc. (NASDAQ:ALGN) and Myriad Genetics, Inc. (NASDAQ:MYGN) . Notably, PetMed, Align Technology and Myriad Genetics sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

PetMed has a long-term expected earnings growth rate of 10%. The stock has rallied roughly 79.4% over a year.

Align Technology has a long-term expected earnings growth rate of 28.9%. The stock has gained 164.5% in a year.

Myriad Genetics has a long-term expected earnings growth rate of 15%. The stock has gained 88.3% in a year.

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