What’s Next For Bio-Rad Laboratories Stock After A 10% Rise In A Month?

The stock price of Bio-Rad Laboratories (NYSE: BIO), a life science research and clinical diagnostic products company, has seen a 10% rise over the last twenty-one trading days, while it is up 30% over the last year, driven by positive developments for the company. Last month, Bio-Rad announced its partnership with South Korea based Seegene Inc., a multiplex molecular diagnostics company, for the development and commercialization of infectious disease molecular diagnostic products in the U.S. ^[1] Last week, the company also received CE Mark for its SARS-CoV-2, Influenza RT-PCR Assay Kit. Bio-Rad’s assay kit can simultaneously detect Covid-19 and influenza viruses in a single reaction. This will be helpful in differentiating the cases of Covid-19 that do not involve flu infection, and now with the CE mark, the company can also expect a near-term growth in revenues from this test.

However, now that BIO stock has seen a rise of 10% in twenty-one trading days, will it continue its upward trajectory, or is a fall imminent? Going by historical performance, there is a higher chance of a decline in BIO stock over the next month. Out of 206 instances in the last ten years that BIO stock saw a twenty-one day rise of 10% or more, 111 of them resulted in BIO stock declining over the subsequent one month period (twenty-one trading days). This historical pattern reflects 111 out of 206, or about 54% chance of a decline in BIO stock over the coming month. See our analysis on Bio-Rad Laboratories Stock Chances of A Decline for more details.

Calculation of ‘Event Probability‘ and ‘Chance of Rise‘ using last ten years data

1. After moving -0.06% or more over a five-day period, the stock rose in the next five days on 56% of the occasions.
2. After moving 2.6% or more over a ten-day period, the stock rose in the next ten days on 54% of the occasions
3. After moving 10.0% or more over a twenty-one-day period, the stock rose in the next twenty-one days on only 46% of the occasions.

Predict average return on Bio-Rad Laboratories (BIO) Stock Return: AI Predicts BIO Average and Excess Return After a Fall or Rise

Bio-Rad Laboratories (BIO) Stock Return (Recent) Comparison With Peers

• Five-Day Return: MTD highest at 0.9%; SPY lowest at -1%
• Ten-Day Return: WAT highest at 5.6%; PKI lowest at -0.3%
• Twenty-One Days Return: TMO highest at 11%; SPY lowest at 2.2%

While BIO stock may see lower levels, 2020 has created many pricing discontinuities which can offer attractive trading opportunities. For example, you’ll be surprised how counter-intuitive the stock valuation is for Heico vs Thermo Fisher Scientific.

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Notes:

1. Bio-Rad Press Release, Jun 30, 2021 [↩]