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Bull of the Day

The third quarter of fiscal 2010 turned out to be the second consecutive profitable quarter for Genomic Health (GHDX) with an EPS of $0.12, surpassing the Zacks Consensus Estimate of breakeven earnings.

The company's lead product, the Oncotype DX breast cancer test, recorded annualized growth of 17%. Although the colon cancer test launched earlier this year has yet to make a significant contribution to the top line, the situation could improve gradually as the company tries to receive reimbursements.

We are also encouraged by the NCCN guidelines, which could lead to growing awareness among patients and further increase the acceptance of the test. Given these factors we have raised our estimates and upgrade the stock to Outperform.

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