When a stock plunges, investors are left wondering if it represents a buy-the-dip opportunity or a value trap. In the case of contract research organization ICON (NASDAQ:ICLR), most hedge fund managers trading it seem to think it’s time to buy the dip. However, one manager may have identified some potential problems with the company’s strategy. As always, it’s up to investors to pick sides on this one. ICON shares have tumbled 18% year to date as of mid-afternoon on Sept. 11.
Background on ICON and what went wrong with ICLR stock
ICON is the world’s second-biggest contract research organization (CRO) and the number one pure-play name in the industry, trailing just IQVIA Holdings, according to . CROs like ICON offer outsourcing services for clinical trials, alongside related services for major biopharma companies. ICON provides outsourced clinical trial services for all four phases of clinical development.
In addition to clinical trials, ICON also offers consulting, laboratory services and support for the commercialization process, all aimed at helping accelerate drug, device and treatment development. The company’s services span all stages of drug development, starting with the initial molecule stage all the way through distribution.
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