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Co-Diagnostics’ Test Kits Still Make CODX Stock a Great Buy

As the economy trudges forward in the second quarter, the demand for novel coronavirus testing kits remains strong. This need puts Co-Diagnostics (NASDAQ:CODX) stock in the spotlight, as the company is a well-known provider of these potentially lifesaving test kits.

codx stock

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With a few wobbles here and there, the CODX stock price has maintained an upward slope since the initial outbreak of Covid-19. In light of this, some traders might be hesitant to buy shares now that the price is higher.

However, the data doesn’t warrant such hesitation, and higher prices are very likely.

Co-Diagnostics has earned its share price — and more — as the company’s ability to produce highly accurate test kits will continue to prove invaluable throughout the year.

CODX Stock Climbs as Company Fulfills a Need

From governments to businesses to individuals, it seems like everyone’s clamoring for more test kits. As long as a vaccine for the coronavirus remains elusive, the ability to test for the presence of Covid-19 will be a high priority.

Companies that specialize in providing Covid-19 test kits have, by and large, seen their stock shares increase in value since the beginning of the year. That’s understandable as these companies are fulfilling a significant need in the community.

One way to evaluate these companies would be to measure the pace at which they are able to manufacture Covid-19 test kits and get them to the public. Just as important as the quantity, however, is the quality of the test kits.

In terms of quantity, Co-Diagnostics has demonstrated its ability to efficiently get its Covid-19 test kits to the public. The data on this, so far, is impressive.

By March 20, Co-Diagnostics produced over 6 million Covid-19 test kits. That’s a lot of test kits. But it’s just the beginning as the company has ordered the materials to produce 20 million more kits.

The U.S. Food and Drug Administration granted emergency-use authorization for Co-Diagnostics’ Covid-19 testing kits. Regulatory approval is crucial, and Co-Diagnostics has essentially been given the seal of approval.

Test Kit Accuracy Is the Key

Just based on the regulatory approval for the company’s test kits, the CODX stock price could continue to move higher throughout the year. Yet, once again, investors must analyze not only the quantity of tests kits but the quality of those kits.

Producing accurate test kits is vital not just for the company’s reputation but also for the health of the public. So, how do Co-Diagnostics’ Covid-19 test kits measure up in terms of accuracy?

You might see social media and television commentators say that Co-Diagnostics’ Covid-19 test kits are “100% accurate.” That’s not the exact phrasing used by the company, though. Concerning this, it’s probably best to let the company speak for itself.

In a recent news release, Co-Diagnostics affirmed that the company’s “COVID-19 test kit shows 100% specificity and 100% sensitivity in several independent evaluations.” Could that be interpreted as saying the kits are effectively 100% accurate?

It depends on how you define accuracy. “100% specificity” might be interpreted as reliably able to prevent a false-negative error. Meanwhile, “100% sensitivity” could be construed as consistently able to prevent a false-positive error.

So at the very least, the company is fully transparent regarding how it defines accuracy in testing. And so far, there’s no compelling reason to believe that Co-Diagnostics can’t deliver on the promise of accurate testing.

Thus, the company’s strength lies in a combination of efficient throughput and highly accurate testing. In providing this, Co-Diagnostics has earned its reputation as an outstanding supplier of test kits.

The Bottom Line on Co-Diagnostics

The price increase in CODX stock isn’t based on hype, but on the company fulfilling a vital need. This need will very likely persist for a while.

That being the case, Co-Diagnostics will remain an essential company in the fight against the spread of Covid-19.

Louis Navellier had an unconventional start, as a grad student who accidentally built a market-beating stock system — with returns rivaling even Warren Buffett. In his latest feat, Louis discovered the “Master Key” to profiting from the biggest tech revolution of this (or any) generation. Louis Navellier may hold some of the aforementioned securities in one or more of his newsletters. 

Article printed from InvestorPlace Media, https://investorplace.com/2020/05/co-diagnostics-codx-stock-test-kits-buy-now/.

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