What happened Shares of Co-Diagnostics (NASDAQ: CODX) were getting clobbered on Tuesday, with the stock down 15.9% as of 12:02 p.m. EST. The decline resulted from the molecular diagnostics company's third-quarter update, provided after the market closed on Monday. Although Co-Diagnostics reported huge revenue and earnings growth, its earnings per share of $0.53 missed the consensus analyst estimate of $0.63 per share. So what Missing Wall Street analysts' expectations in one quarter really doesn't matter. What does matter is Co-Diagnostics' growth prospects and whether or not the valuation of the healthcare stock already reflects those prospects. Image source: Getty Images. There's a pretty good argument to be made that the company's growth prospects remain very strong. The COVID-19 pandemic is worsening in the U.S. and in many other countries. This drives demand even higher for the diagnostics tests marketed by Co-Diagnostics. The company's receipt of CE markings for its Logix Smart ABC (Influenza A/B, SARS-CoV-2) and its Logix Smart SARS-CoV-2 diagnostics tests announced on Tuesday should boost its prospects even more. Co-Diagnostics stock's valuation also appears to remain attractive. Shares currently trade at only a little over five times expected earnings. The company can afford to miss earnings estimates to some extent and still be a relative bargain based on its growth potential. Now what What happens next with Co-Diagnostics depends heavily on how bad the situation gets with coronavirus outbreaks. Some experts, including longtime director of the National Institute of Allergy and Infectious Diseases Anthony Fauci, have predicted a difficult winter as COVID-19 cases rise. While this wouldn't be good news for the U.S., it would translate to greater demand for Co-Diagnostics' COVID-19 tests. 10 stocks we like better than Co-Diagnostics, Inc.When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Co-Diagnostics, Inc. wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of October 20, 2020 Keith Speights has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.Source