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Here's Why You Should Retain Myriad Genetics (MYGN) Stock Now
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Myriad Genetics (MYGN - Free Report) is well-poised for growth in the coming quarters, backed by the strength of its oncology business. The company launched a slew of products in recent months. Progress in its transformation plan, growth initiatives and planned divestitures will provide MYGN with a foundation for consistent, long-term growth and profitability. However, escalating expenses and a competitive space are worrisome.
In the past year, this Zacks Rank #3 (Hold) stock has increased 23.7% against the 8.4% fall of the industry and the 13.2% rise of the S&P 500 composite.
The renowned genetic testing and precision medicine company has a market capitalization of $1.86 billion. The company has estimated earnings growth of 100% compared with the S&P 500’s 16.69%. Myriad Genetics surpassed estimates in two of the trailing four quarters and missed the same in the other two, delivering an average negative earnings surprise of 65.13%.
Let’s delve deeper.
Tailwinds
Huge Potential in Oncology Testing: In the first quarter of 2023, Myriad Genetics’ Oncology business generated $77.6 million in revenues, with test volumes being approximately 50,000. Prolaris continued to see strong demand as first-quarter testing volumes increased 22% year over year. Hereditary cancer testing volume in oncology grew 16% year over year.
Image Source: Zacks Investment Research
During the first-quarter earnings update, MYGN noted that FirstGene is complementary to the company’s current prenatal portfolio and targets more than one million patients in the United States. The company is preparing for a launch in the fourth quarter of this year. MYGN is also planning to expand its suite of precise oncology solutions, with the launch of a liquid biopsy test for tumor profiling in the second half of 2023.
Product Launches: Last month, Myriad Genetics announced the addition of Folate Receptor Alpha to its Precise Oncology Solutions portfolio. In the first quarter, Myriad Genetics launched a unified ordering portal for women's health business to simplify the ordering process for customers, especially for those ordering more than one Myriad product.
The company also collaborated with one of the largest independent outpatient medical imaging providers in the United States, SimonMed Imaging, to launch a new hereditary cancer risk assessment program. MYGN’s expanded partnership with Illumina will broaden its emerging biopharma business and access to HRD testing in the United States.
Transformation Growth Strategy Progresses Well: In the first quarter of 2023, the company added many experienced leaders to the group to help drive growth even further with improved operational efficiencies.
MYGN continues to enhance its core commercial organization with prudent investments in technologies and innovations and is excited about FirstGene Myriad Genetics’ next-generation prenatal offering. Recently, the company announced a partnership with ClinVar.
Downsides
Q1 Negatives: In the first quarter, Myriad Genetics registered a gross margin contraction and an operating loss due to mounting costs and expenses, which is concerning. Adjusted operating expenses for the quarter reflected investments in sales and marketing programs, technology, R&D, additional operating expenses from Gateway Genomics and inflationary pressures.
Increasing Competition: Per management, MYGN expects competition to intensify in its current fields with recently observed advancements in technology. In our opinion, competitive headwinds might push down the prices of the high-priced tests provided by Myriad Genetics. This might deter margin improvement going forward.
Estimate Trend
The Zacks Consensus Estimate for MYGN’s 2023 loss per share has remained constant at 33 cents in the past 30 days.
The Zacks Consensus Estimate for the company’s 2023 revenues is pegged at $738.9 million. This suggests an 8.92% rise from the year-ago reported number.
Zimmer Biomet has an earnings yield of 5.22% compared to the industry’s -1.40%. Zimmer Biomet’s earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 7.38%. Its shares have rallied 36% against the industry’s 22.6% decline over the past year.
Penumbra, sporting a Zacks Rank #1 at present, has an estimated growth rate of 64.1% for 2024. Penumbra shares have surged 154.6% compared with the industry’s 10.8% rise over the past year.
PEN’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 109.4%.
Hologic, carrying a Zacks Rank #2 (Buy) at present, has an earnings yield of 4.80% compared to the industry’s -6.96%. Shares of HOLX have risen 15.9% compared with the industry’s 10.8% growth over the past year.
Hologic’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 27.3%.
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Here's Why You Should Retain Myriad Genetics (MYGN) Stock Now
Myriad Genetics (MYGN - Free Report) is well-poised for growth in the coming quarters, backed by the strength of its oncology business. The company launched a slew of products in recent months. Progress in its transformation plan, growth initiatives and planned divestitures will provide MYGN with a foundation for consistent, long-term growth and profitability. However, escalating expenses and a competitive space are worrisome.
In the past year, this Zacks Rank #3 (Hold) stock has increased 23.7% against the 8.4% fall of the industry and the 13.2% rise of the S&P 500 composite.
The renowned genetic testing and precision medicine company has a market capitalization of $1.86 billion. The company has estimated earnings growth of 100% compared with the S&P 500’s 16.69%. Myriad Genetics surpassed estimates in two of the trailing four quarters and missed the same in the other two, delivering an average negative earnings surprise of 65.13%.
Let’s delve deeper.
Tailwinds
Huge Potential in Oncology Testing: In the first quarter of 2023, Myriad Genetics’ Oncology business generated $77.6 million in revenues, with test volumes being approximately 50,000. Prolaris continued to see strong demand as first-quarter testing volumes increased 22% year over year. Hereditary cancer testing volume in oncology grew 16% year over year.
Image Source: Zacks Investment Research
During the first-quarter earnings update, MYGN noted that FirstGene is complementary to the company’s current prenatal portfolio and targets more than one million patients in the United States. The company is preparing for a launch in the fourth quarter of this year. MYGN is also planning to expand its suite of precise oncology solutions, with the launch of a liquid biopsy test for tumor profiling in the second half of 2023.
Product Launches: Last month, Myriad Genetics announced the addition of Folate Receptor Alpha to its Precise Oncology Solutions portfolio. In the first quarter, Myriad Genetics launched a unified ordering portal for women's health business to simplify the ordering process for customers, especially for those ordering more than one Myriad product.
The company also collaborated with one of the largest independent outpatient medical imaging providers in the United States, SimonMed Imaging, to launch a new hereditary cancer risk assessment program. MYGN’s expanded partnership with Illumina will broaden its emerging biopharma business and access to HRD testing in the United States.
Transformation Growth Strategy Progresses Well: In the first quarter of 2023, the company added many experienced leaders to the group to help drive growth even further with improved operational efficiencies.
MYGN continues to enhance its core commercial organization with prudent investments in technologies and innovations and is excited about FirstGene Myriad Genetics’ next-generation prenatal offering. Recently, the company announced a partnership with ClinVar.
Downsides
Q1 Negatives: In the first quarter, Myriad Genetics registered a gross margin contraction and an operating loss due to mounting costs and expenses, which is concerning. Adjusted operating expenses for the quarter reflected investments in sales and marketing programs, technology, R&D, additional operating expenses from Gateway Genomics and inflationary pressures.
Increasing Competition: Per management, MYGN expects competition to intensify in its current fields with recently observed advancements in technology. In our opinion, competitive headwinds might push down the prices of the high-priced tests provided by Myriad Genetics. This might deter margin improvement going forward.
Estimate Trend
The Zacks Consensus Estimate for MYGN’s 2023 loss per share has remained constant at 33 cents in the past 30 days.
The Zacks Consensus Estimate for the company’s 2023 revenues is pegged at $738.9 million. This suggests an 8.92% rise from the year-ago reported number.
Key Picks
Some better-ranked stocks in the broader medical space are Zimmer Biomet (ZBH - Free Report) , Penumbra (PEN - Free Report) and Hologic, Inc. (HOLX - Free Report) .
Zimmer Biomet has an earnings yield of 5.22% compared to the industry’s -1.40%. Zimmer Biomet’s earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 7.38%. Its shares have rallied 36% against the industry’s 22.6% decline over the past year.
ZBH sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Penumbra, sporting a Zacks Rank #1 at present, has an estimated growth rate of 64.1% for 2024. Penumbra shares have surged 154.6% compared with the industry’s 10.8% rise over the past year.
PEN’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 109.4%.
Hologic, carrying a Zacks Rank #2 (Buy) at present, has an earnings yield of 4.80% compared to the industry’s -6.96%. Shares of HOLX have risen 15.9% compared with the industry’s 10.8% growth over the past year.
Hologic’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 27.3%.