Is PerkinElmer Stock Poised for a Sustained Recovery?

After a prolonged period of decline, PerkinElmer shares are showing surprising signs of life. A new strategic partnership and robust expansion within two key markets may finally signal the long-awaited turnaround. However, with the stock down more than 25% over the past year, the critical question for investors is whether this upward movement represents a sustainable reversal or merely a temporary respite.

Explosive Growth in Preclinical Imaging

Perhaps the most significant long-term driver for the company is its strong positioning within the preclinical imaging sector. This market is projected to experience explosive growth, with an estimated annual growth rate of 14.3% through 2033. Industry projections indicate it will surge from $2.5 billion in 2024 to a potential $7.8 billion. A primary catalyst for this expansion is the increasing global demand for non-invasive imaging techniques used in drug efficacy research.

Strategic Partnership Fuels Momentum

The recent uptick in share price was significantly influenced by the announcement of a promising strategic alliance. Covaris, a PerkinElmer subsidiary, has entered into a cooperative agreement with Hamilton Company. The partnership will focus on the joint marketing of the innovative truXTRAC® FFPE SMART Solution. This sonication technology is set to revolutionize sample preparation workflows within the biopharma and diagnostic industries, highlighting PerkinElmer’s continued strategic emphasis on advanced automation solutions.

Should investors sell immediately? Or is it worth buying PerkinElmer?

Diversification Across Analytical Technologies

Concurrently, PerkinElmer is reinforcing its standing in the differential scanning calorimetry (DSC) market. This technology segment is experiencing steady expansion, propelled by rising product demand, an expanding client base, and ongoing technological innovation. The company’s broad diversification across various analytical and diagnostic instrumentation fields provides a layer of resilience, helping to insulate it from volatility in any single market.

Significant Challenges Remain

Despite an encouraging single-day surge of over 5% to approximately $94, the equity continues to grapple with the headwinds that have plagued it over the previous year. Since August 2024, the stock has shed roughly a quarter of its value and remains substantially below its 52-week high of nearly $130.

The pivotal issue for market watchers is whether these positive fundamental developments possess enough strength to definitively break the downward trend and guide PerkinElmer shares back into profitable territory.