Back to top

Image: Bigstock

Here's Why You Should Invest in Genomic Health (GHDX) Now

Read MoreHide Full Article

Genomic Health, Inc.  has been gaining investor confidence on stellar results over an extended period. Over the past year, the company’s share price has outperformed its industry. The stock has gained 91.8% against the industry’s 11.8% fall. Also, the company has fared better than the S&P 500’s 18.4% rise.

This developer and marketer of genomic-based clinical tests for cancer diagnosis has a market cap of $2.11 billion.

Which Way Are the Estimates Treading?

The company’s estimate revision trend for the current year is positive. In the past 60 days, five analysts revised their estimates upward with no movement in the opposite direction.  Further, the Zacks Consensus Estimate for current-year revenues of $380.4 million reflects a year-over-year improvement of 11.6%.

With solid prospects, this Zacks Rank #2 (Buy) stock is an attractive pick for now. Let’s find out whether the recent positive trend is a sustainable one.

What’s Boosting the Stock?

Solid Quarterly Performance

Genomic Health exited second-quarter 2018 on a promising note. We are encouraged by the year-over-year rise in revenues, led by solid performances in the United States and globally. Within the prostate cancer space, the company saw increasing private coverage for the Oncotype DX GPS test.

Geographical Expansion Impressive

Genomic Health is focused on making considerable expansion in the international arena. So far, the company has delivered over 900,000 test results to cancer patients in nearly 90 countries. During the second quarter of 2018, international test revenues increased low double-digits year over year.  The company has also witnessed a slew of developments like receipt of public coverage with the province of New Brunswick for using the Oncotype DX Breast Recurrence Score test in early-stage breast cancer patients with node-negative disease in its international business.

Strong Prostate Cancer Test Adoption

Genomic Health’s U.S. prostate cancer business has steadily accelerated over the last few quarters. The company has seen increased adoption of this test on private reimbursement. Second-quarter revenues in this business rose 63% on a year-over-year basis led by rising test volumes, expanding coverage and payments from private payers along with CMS coverage for intermediate-risk patients.

Moreover, two studies supporting the favorable impact of the Oncotype DX GPS test on risk assessment in clinically low-risk prostate cancer patients in real-world practice were presented at the 2018 American Urological Association Annual Meeting.

Want More from the MedTech Space?

Other top-ranked stocks in the broader medical space are Integer Holdings Corporation (ITGR - Free Report) , Intuitive Surgical (ISRG - Free Report) and Masimo Corporation (MASI - Free Report) .

Integer Holdings’ expected long-term earnings growth rate is 15%. The stock sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Intuitive Surgical’s long-term expected earnings growth rate is 14.7%. The stock carries a Zacks Rank #1.

Masimo’s long-term expected earnings growth rate is 14.8%. The stock has a Zacks Rank #2.

Looking for Stocks with Skyrocketing Upside?

Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.

Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.

See the pot trades we're targeting>>


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Intuitive Surgical, Inc. (ISRG) - free report >>

Masimo Corporation (MASI) - free report >>

Integer Holdings Corporation (ITGR) - free report >>

Published in