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Anatomy of Success: Exact Sciences Corp (EXAS)

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At Zacks we stress the value of the Zacks Ranking system, and specifically the few companies that earn the exclusive Zacks #1 (Strong Buy) rank.  Only 5% of the Zacks Rank universe receives this grade, and over a 1-3 month time frame it has a long history of outperforming the markets.  The system helps you identify companies both big and small that are poised for near term growth.  

While the Zacks Rank is an excellent near term indicator for finding the best stocks, the system also helps you stay in the strongest ones while they continue to appreciate in price.  

Example: Exact Sciences Corp

Exact Sciences Corp (EXAS - Free Report) is a mid-cap growth stock who uses applied genomics to develop effective, patient-friendly screening technologies for use in the detection of cancer. Certain of its technologies have been licensed to Laboratory Corporation of America Holdings for a stool-based DNA screening assay for colorectal cancer in the average-risk population. The company believes that their genomics-based technologies would help to enable detection of colorectal cancer so that more people can be effectively treated.

On December 30, 2016 Exact Sciences received a Zacks Rank #1 designation just after the company announced that they signed a contract with Humana to cover Cologuard (a noninvasive at home colon cancer test) as an in-network service, which would become effective on January 1, 2017.  On December 30th, the stock price closed at $13.36 per share.

Over the next three consecutive quarters EXAS beat both the Zacks consensus earnings and revenue estimates.  At the same time future estimates saw a consistent quarter over quarter positive estimate revisions.  Annual estimates were also positively revised after each quarterly beat.  Cologuard remained a strong driver for the company, and still remains a big reason for their success.  

Exact Sciences also received a Zacks Rank #1 on July 14th, and October 13th of this year.  As of the close on November 3rd, the stock was at $56.71 per share.  This is a +324% gain from when it first became a Rank #1 on December 30th of 2016.  

As you can see in the chart below, the stock price has seen amazing price appreciation from December 30th, and the forward 12 month rolling EPS estimates have been consistently moving upwards as well.

Overall, by utilizing the Zack Ranking system you can easily find stocks that are best positioned to beat the market on a consistent basis, and how to retain the best stocks while they continue to grow.

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