PerkinElmer (PKI) to Acquire India-Based Tulip Diagnostics

Waltham, MA-based PerkinElmer, Inc. PKI announced that it has entered into a definitive agreement to acquire Tulip Diagnostics Private Ltd. The transaction is currently anticipated to close in the first quarter of 2017.

A glimpse at the price movement reveals that in the last three months, the stock registered a loss of almost 0.50%, narrower than the Zacks categorized Instruments-Scientific sub-industry’s loss of roughly 1.52%. Average volume of shares traded over the last six months was remarkable at approximately 608.3K. The stock has a market cap of $5.82 billion.

However, the estimate revision trend does not look promising with one estimate moving south over the past two months. Notably, the current fiscal year estimates for the stock decreased by 3 cents to $2.77 per share over the last three months. Additionally, the stock promises an earnings yield of 5.63% compared with with the industry’s yield of 4.55%.

Coming back to the news, Goa, India-based Tulip is one of India’s largest domestic providers of in-vitro diagnostic reagents, kits and instruments to an expansive customer base of diagnostic labs and government and private healthcare facilities. Tulip’s solutions include products for the prevention, screening and diagnosis of infectious diseases such as malaria, HIV and hepatitis.
 
We are bullish over the acquisition as it would help PerkinElmer in the long run to tap emerging market diagnostics, which is quite attractive. Tulip’s product portfolio, channel access, and broad footprint provide the key enablers to help accelerate our growth in this important market.

PerkinElmer offers a global diagnostics portfolio focused on: reproductive health, infectious disease screening and genomics offerings for oncology and other molecular tests. It has approximately 8,000 employees serving customers in more than 150 countries.

Zacks Rank & Key Picks

Currently, PerkinElmer has a Zacks Rank #4 (Sell).

Better-ranked stocks in the broader medical sector include Addus HomeCare Corporation ADUS, Cogentix Medical, Inc. CGNT and Penumbra Inc. PEN. All the stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Addus HomeCare has a long-term expected earnings growth rate of approximately 15%. Notably, the stock witnessed an impressive return of 58.7% in the past one year.

Cogentix Medical posted a positive earnings surprise of 100% in the last reported quarter. Additionally, the company has a promising one-year return of almost 80.2%.

Penumbra has a long-term expected earnings growth rate of approximately 20%. Notably, the stock has an impressive one-year return of almost 23%.

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PerkinElmer, Inc. (PKI): Free Stock Analysis Report
 
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Cogentix Medical, Inc. (CGNT): Free Stock Analysis Report
 
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