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Reasons to Hold on to Myriad Genetics (MYGN) Stock For Now
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Myriad Genetics, Inc. (MYGN - Free Report) has been gaining from spectacular improvement in Pharmacogenomics testing revenues, along with growth in tumor profiling and GeneSight test volumes. Recent product launches looks encouraging. However, stiff competition and foreign exchange headwinds do not bode well for the stock.
Over the past year, the Zacks Rank #3 (Hold) stock has lost 16.1% compared with the 37.9% decline of the industry and 9% rise of the S&P 500.
The renowned molecular diagnostic company has a market capitalization of $2.15 billion. The company’s earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters and missed the same in one, delivering an average surprise of 2.9%.
Let’s delve deeper.
Factors At Play
Huge Potential in Oncology Testing: The company is boding well to cash on the huge potential in the breast cancer screening market. During the fourth quarter of 2021, Myriad Genetics’ Oncology business grew 12% year over year. The company noted that in early 2022, it will launch Precise Tumor for molecular tumor profiling – a part of a suite of Precise Oncology Solutions that combines the company’s MyRisk germline hereditary cancer testing technology and its MyChoice CDx companion diagnostic test with a Myriad tumor profiling test powered by Illumina’s TSO500 technology.
myChoice CDx Progresses Well: Myriad Genetics' progress across the globe, with respect to myChoice CDx test, seems impressive. The company recorded strong revenue growth in the reported quarter from companion diagnostics, including significant revenue share from its proprietary myChoice CDx test. During the fourth-quarter earnings update, the company announced plans to expand its market-leading FDA-approved companion diagnostic test, MyChoice CDx, to other indications like breast, prostate and pancreatic cancers, for expanded pharma clinical trials and commercial testing.
Product Launches Looks Encouraging: Myriad Genetics launched a slew of products in recent months. The company, in February 2021, launched the new Vectra Cardiovascular Risk assessment that can predict the risk for cardiovascular events in patients with rheumatoid arthritis.
Image Source: Zacks Investment Research
In August 2021, the company launched its myRisk hereditary cancer test with riskScore for all ancestries, which is the only polygenic breast cancer risk assessment available. With riskScore, clinicians can gain critical insights to help treat women with increased risk of breast cancer who likely do not have an identifiable mutation in one of the breast cancer genes. Per the fourth-quarter earnings update, the company plans to launch a combined prenatal and carrier screening test, FirstGene, in 2023.
Downsides
Increasing Competition: With the entry of new players, imminent price competition is another cause of concern. Per management, Myriad Genetics is currently facing competition in its key BRACAnalysis market. The company expects competition to intensify in its current fields with recent advancements in technology.
Foreign Exchange Headwinds: Myriad Genetics receives a considerable portion of its revenues and pays a portion of its expenses in foreign currencies. As a result, the company remains at risk of exchange rate fluctuations between foreign currencies and the U.S. dollar.
Estimate Trend
Over the past 60 days, the Zacks Consensus Estimate for Insulet’s EPS has moved down by 52.2% to 11 cents.
The Zacks Consensus Estimate for 2022 revenues is pegged at $683.2 million, suggesting a 1.1% fall from the year-ago reported number.
Key Picks
Few better-ranked stocks in the broader medical space are McKesson Corporation (MCK - Free Report) , AMN Healthcare Services, Inc. (AMN - Free Report) and Bio-Rad Laboratories, Inc. (BIO - Free Report) .
McKesson has a long-term earnings growth rate of 11.8%. MCK has gained 55% compared with the industry’s 5.7% growth in the past year.
AMN Healthcare, carrying a Zacks Rank #1, has a long-term earnings growth rate of 16.2%. The company's earnings surpassed estimates in the trailing four quarters, delivering a surprise of 19.5%, on average.
AMN Healthcare has outperformed its industry over the past year. AMN has gained 34.5% versus the 60.4% industry decline.
Bio-Rad reported fourth-quarter 2021 adjusted EPS of $3.21, which surpassed the Zacks Consensus Estimate by 11.9%. It currently has a Zacks Rank #2.
Bio-Rad has an earnings yield of 2.3%, which compares favorably against the industry’s negative yield. BIO's earnings surpassed estimates in the trailing four quarters, the average surprise being 66.9%.
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Reasons to Hold on to Myriad Genetics (MYGN) Stock For Now
Myriad Genetics, Inc. (MYGN - Free Report) has been gaining from spectacular improvement in Pharmacogenomics testing revenues, along with growth in tumor profiling and GeneSight test volumes. Recent product launches looks encouraging. However, stiff competition and foreign exchange headwinds do not bode well for the stock.
Over the past year, the Zacks Rank #3 (Hold) stock has lost 16.1% compared with the 37.9% decline of the industry and 9% rise of the S&P 500.
The renowned molecular diagnostic company has a market capitalization of $2.15 billion. The company’s earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters and missed the same in one, delivering an average surprise of 2.9%.
Let’s delve deeper.
Factors At Play
Huge Potential in Oncology Testing: The company is boding well to cash on the huge potential in the breast cancer screening market. During the fourth quarter of 2021, Myriad Genetics’ Oncology business grew 12% year over year. The company noted that in early 2022, it will launch Precise Tumor for molecular tumor profiling – a part of a suite of Precise Oncology Solutions that combines the company’s MyRisk germline hereditary cancer testing technology and its MyChoice CDx companion diagnostic test with a Myriad tumor profiling test powered by Illumina’s TSO500 technology.
myChoice CDx Progresses Well: Myriad Genetics' progress across the globe, with respect to myChoice CDx test, seems impressive. The company recorded strong revenue growth in the reported quarter from companion diagnostics, including significant revenue share from its proprietary myChoice CDx test. During the fourth-quarter earnings update, the company announced plans to expand its market-leading FDA-approved companion diagnostic test, MyChoice CDx, to other indications like breast, prostate and pancreatic cancers, for expanded pharma clinical trials and commercial testing.
Product Launches Looks Encouraging: Myriad Genetics launched a slew of products in recent months. The company, in February 2021, launched the new Vectra Cardiovascular Risk assessment that can predict the risk for cardiovascular events in patients with rheumatoid arthritis.
Image Source: Zacks Investment Research
In August 2021, the company launched its myRisk hereditary cancer test with riskScore for all ancestries, which is the only polygenic breast cancer risk assessment available. With riskScore, clinicians can gain critical insights to help treat women with increased risk of breast cancer who likely do not have an identifiable mutation in one of the breast cancer genes. Per the fourth-quarter earnings update, the company plans to launch a combined prenatal and carrier screening test, FirstGene, in 2023.
Downsides
Increasing Competition: With the entry of new players, imminent price competition is another cause of concern. Per management, Myriad Genetics is currently facing competition in its key BRACAnalysis market. The company expects competition to intensify in its current fields with recent advancements in technology.
Foreign Exchange Headwinds: Myriad Genetics receives a considerable portion of its revenues and pays a portion of its expenses in foreign currencies. As a result, the company remains at risk of exchange rate fluctuations between foreign currencies and the U.S. dollar.
Estimate Trend
Over the past 60 days, the Zacks Consensus Estimate for Insulet’s EPS has moved down by 52.2% to 11 cents.
The Zacks Consensus Estimate for 2022 revenues is pegged at $683.2 million, suggesting a 1.1% fall from the year-ago reported number.
Key Picks
Few better-ranked stocks in the broader medical space are McKesson Corporation (MCK - Free Report) , AMN Healthcare Services, Inc. (AMN - Free Report) and Bio-Rad Laboratories, Inc. (BIO - Free Report) .
McKesson, carrying a Zacks Rank #2 (Buy), reported third-quarter fiscal 2022 adjusted EPS of $6.15, which beat the Zacks Consensus Estimate of $5.38 by 14.3%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
McKesson has a long-term earnings growth rate of 11.8%. MCK has gained 55% compared with the industry’s 5.7% growth in the past year.
AMN Healthcare, carrying a Zacks Rank #1, has a long-term earnings growth rate of 16.2%. The company's earnings surpassed estimates in the trailing four quarters, delivering a surprise of 19.5%, on average.
AMN Healthcare has outperformed its industry over the past year. AMN has gained 34.5% versus the 60.4% industry decline.
Bio-Rad reported fourth-quarter 2021 adjusted EPS of $3.21, which surpassed the Zacks Consensus Estimate by 11.9%. It currently has a Zacks Rank #2.
Bio-Rad has an earnings yield of 2.3%, which compares favorably against the industry’s negative yield. BIO's earnings surpassed estimates in the trailing four quarters, the average surprise being 66.9%.