Sunday, February 27, 2022

PerkinElmer Exiting The Pandemic In A Better Position For Long-Term Growth

 

Credit where due - not only did PerkinElmer (PKI) do better during the pandemic than I expected, but management has been opportunistic with the windfall created by COVID-19, reinvesting in acquisitions that have helped to further diversify and grow the company's scientific tools and diagnostics businesses. I'm particularly enthusiastic about the efforts made to expand the company's exposure to areas like cytometry and gene therapy.

PerkinElmer shares have done quite well since my last write-up on the company, not only handily outperforming the S&P 500, but also outperforming other well-liked life science peers like Agilent (A), Danaher (DHR), and Thermo Fisher (TMO). While valuation is no less problematic now, I do believe that the company has at least improved its long-term revenue growth and margin prospects, and above-average revenue growth and margin leverage is usually a compelling combination for stock price performance.

 

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PerkinElmer Exiting The Pandemic In A Better Position For Long-Term Growth

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