Alere Inc. (ALR) Buy or Sell Stock Guide

Last updated: Sep 23, '17

The analysis below may be helpful to you if you have any of the following questions about ALR stock:

  • Is ALR a buy or a sell?
  • Should I sell or hold ALR stock today?
  • Is ALR a good buy / a good investment?
  • What are ALR analyst opinions, recommendations, ratings?

Here are ALR stock buy reasons/signals:

1. Changes in management have allowed Alere to shift strategic focus toward its strength in point-of-care diagnostics.

2. Alere offers point-of-care devices in many high-growth segments. If those devices can sustain or increase share in the cardiology and oncology markets, they should benefit from high industry growth rates.

3. Alere's international growth profile is promising, particularly in geographic regions without the central reference lab infrastructure.

4. ALR profitability is improving. The YoY profit margin change was 9.54pp.

Here are ALR stock sell reasons/signals:

1. Point-of-care diagnostic tests are more expensive on a per-unit basis than central labs, a difficult value proposition in the face of healthcare reform.

2. Alere must innovate and protect its intellectual property portfolio in order to stay ahead of the rapid pace of technological advancement, which may not be possible in the face of stiff competition.

3. Customer switching costs are difficult to find in point-of-care diagnostics.

4. ALR stock price ($50.39) is close to the 52-week high ($50.53). Perhaps now is a good time to sell?

5. ALR quarterly revenue growth was -8.60%, lower than the industry and sector average revenue growth (4.50% and 5.21%, respectively).

6. ALR forward P/E ratio is 35.59, and it’s high compared to its industry peers’ P/E ratios.

7. ALR PEG ratio (P/E adjusted for growth) is 5.35, and it’s high compared to its industry peers’ PEG ratios.

8. ALR average analyst price target ($49.25) is below its current price ($50.39).

What are your thoughts on ALR?

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