Is QDEL Worth Buying as China Risks Clash With Resilient Core Growth?

QuidelOrtho Corporation (QDEL) is facing challenges due to weakening demand in China and uncertain respiratory product demand, which are offsetting resilience in its core diagnostics businesses. Despite cost-saving efforts and the acquisition of LEX Diagnostics to boost its molecular strategy with NULEXA, the company's financial position is strained by weak cash conversion and high leverage. Consequently, Zacks Investment Research has assigned QDEL a "Strong Sell" rating, suggesting a cautious investment approach until operational improvements lead to stronger financial performance.