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Should You Continue to Hold EXAS Stock in Your Portfolio?
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Key Takeaways
Exact Sciences is driving growth through Cologuard, Oncotype DX and new product launches.
EXAS targets 15% revenue growth, $150M savings by 2026 and stronger operating margins.
Macroeconomic pressures and fierce competition remain key challenges for Exact Sciences.
Exact Sciences Corporation (EXAS - Free Report) is well-poised to grow in the coming quarters, courtesy of the ongoing momentum in its Cologuard and Oncotype DX tests. The company continues to invest in its pipeline to develop innovative solutions for every stage of cancer diagnosis. In addition, the Exact Nexus platform and EXAS’ commercial capabilities are driving stronger Cologuard adoption, narrowing the screening gap. Yet, the fierce competitive landscape and macroeconomic challenges pose operational risks.
In the past year, this Zacks Rank #3 (Hold) stock has plunged 13.6% compared with the 11.9% decline of the industry. Meanwhile, the S&P 500 composite has risen 18.9% in the same time frame.
The renowned global medical device company has a market capitalization of $10.20 billion. EXAS has an estimated long-term earnings growth rate of 30.1% compared with the industry’s 21% growth. Its earnings surpassed estimates in three of the trailing four quarters and missed on one occasion, the average surprise being 329.87%.
Let’s delve deeper.
Tailwinds for Exact Sciences
Strategic Priorities Bode Well: The Exact Sciences team is focused on further promoting Cologuard as the standard of care. Cologuard’s growth continues to be driven by rescreens, care gap programs and improved commercial execution. To enhance growth, the company is investing in the leadership team, training and sales force efficiency, as well as simplifying the electronic ordering process. Oncotype DX, which is included in all major breast cancer treatment guidelines, is seeing robust international uptake. With about 70% of the eligible patients outside the United States not currently being tested, there still remains a substantial opportunity to grow.
Meanwhile, Exact Sciences reaffirmed its long-term target of 15% compounded revenue growth and more than 20% adjusted EBITDA margins. It expects to deliver more than $150 million in annual savings in 2026, mostly led by G&A efficiencies, including using AI and automation in core operations.
Image Source: Zacks Investment Research
Advancing New Solutions: During the second quarter of 2025, Exact Sciences launched the Oncodetect molecular residual disease test as a laboratory-developed test (LDT), which enhances understanding of cancer recurrence and helps support timely, personalized treatment decisions. The test also obtained Medicare reimbursement through the MolDX program, effective April 2025, for serial use in patients with stage II, III, and resectable stage IV colorectal cancer in the adjuvant and recurrence monitoring settings over five years.
In late March, the company launched Cologuard Plus, also covered by Medicare and included in the U.S. Preventive Services Taskforce guidelines as a recommended stool-based screening option. The test features novel biomarkers, improved laboratory processes, enhanced sample stability, and detects CRC and precancerous polyps with even greater sensitivity while reducing false positives by nearly 40% compared to the original Cologuard test. Furthermore, the Cancerguard MCED test is on track to be launched as an LDT soon.
Enhancing Customer Experience: Exact Sciences plans to transform cancer care by providing patients with valuable insights at every step of their diagnosis and treatment. The company is currently working to build the best digital infrastructure and diagnostics. This vision has two main elements: first, enabling patients to take a more proactive role in their care. Second, it makes it easy for physicians to order tests, interpret results and personalize medicine by applying real-world evidence and guideline recommendations.
The combined strength of Exact Nexus, the company’s proprietary technology platform, and EXAS’ commercial capabilities is leading to more patients completing Cologuard every three years, supporting the company’s goal of making screening a routine practice and also closing the screening gap. EXAS has identified more than 100 opportunities with payers and health systems to address the care gaps with Cologuard through large, organized screening programs.
What Concerns Exact Sciences?
Escalating Costs: Exact Sciences’ business has been affected by global macroeconomic conditions. Disruptions in the United States, Europe or other economies, whether from geopolitical tensions or changing international trade policies, could impact global markets, interrupt global supply chains, and lead to inflationary or recessionary effects on the worldwide economy. Additionally, the high-interest-rate environment and limited access to capital markets could strain the company’s suppliers, distributors and key business partners, making it difficult for them to remain viable. All these are creating significant pressure on its profitability as well.
A Tough Competitive Landscape: Given the large market for colorectal cancer screening, Exact Sciences faces numerous competitors, some of which possess significantly greater financial and other resources and development capabilities than the company. Additionally, the hereditary cancer testing market is becoming increasingly competitive with players such as Invitae, Quest Diagnostics and Labcorp. Under such intense market pressures, the company can potentially struggle with growth and profitability if it is unable to compete effectively, risking a decrease in its stock price.
EXAS Stock Estimate Trend
In the past 30 days, the Zacks Consensus Estimate for Exact Sciences’ 2025 earnings has risen 13.8% to 33 cents.
The Zacks Consensus Estimate for 2025 revenues is pegged at $3.16 billion, implying a 14.4% jump from the 2023 reported number.
Masimo has an estimated long-term earnings growth rate of 12.5% compared with the industry’s 9.9%. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 9.17%. MASI shares have rallied 18.7% against the industry’s 15.1% fall in the past year.
Phibro Animal Health, sporting a Zacks Rank #1, has an earnings yield of 6.3% against the industry’s -0.3%. Shares of the company have surged 94.4% compared with the industry’s 2.5% growth. PAHC’s earnings outpaced estimates in each of the trailing four quarters, with the average surprise being 27.9%.
Envista, carrying a Zacks Rank #2 (Buy), has an estimated earnings growth rate of 15.2% for fiscal 2026 compared with the S&P 500 composite’s 11.7% growth. Shares of the company have rallied 17.9% compared with the industry’s 2.5% rise. NVST’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 16.50%.
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Should You Continue to Hold EXAS Stock in Your Portfolio?
Key Takeaways
Exact Sciences Corporation (EXAS - Free Report) is well-poised to grow in the coming quarters, courtesy of the ongoing momentum in its Cologuard and Oncotype DX tests. The company continues to invest in its pipeline to develop innovative solutions for every stage of cancer diagnosis. In addition, the Exact Nexus platform and EXAS’ commercial capabilities are driving stronger Cologuard adoption, narrowing the screening gap. Yet, the fierce competitive landscape and macroeconomic challenges pose operational risks.
In the past year, this Zacks Rank #3 (Hold) stock has plunged 13.6% compared with the 11.9% decline of the industry. Meanwhile, the S&P 500 composite has risen 18.9% in the same time frame.
The renowned global medical device company has a market capitalization of $10.20 billion. EXAS has an estimated long-term earnings growth rate of 30.1% compared with the industry’s 21% growth. Its earnings surpassed estimates in three of the trailing four quarters and missed on one occasion, the average surprise being 329.87%.
Let’s delve deeper.
Tailwinds for Exact Sciences
Strategic Priorities Bode Well: The Exact Sciences team is focused on further promoting Cologuard as the standard of care. Cologuard’s growth continues to be driven by rescreens, care gap programs and improved commercial execution. To enhance growth, the company is investing in the leadership team, training and sales force efficiency, as well as simplifying the electronic ordering process. Oncotype DX, which is included in all major breast cancer treatment guidelines, is seeing robust international uptake. With about 70% of the eligible patients outside the United States not currently being tested, there still remains a substantial opportunity to grow.
Meanwhile, Exact Sciences reaffirmed its long-term target of 15% compounded revenue growth and more than 20% adjusted EBITDA margins. It expects to deliver more than $150 million in annual savings in 2026, mostly led by G&A efficiencies, including using AI and automation in core operations.
Image Source: Zacks Investment Research
Advancing New Solutions: During the second quarter of 2025, Exact Sciences launched the Oncodetect molecular residual disease test as a laboratory-developed test (LDT), which enhances understanding of cancer recurrence and helps support timely, personalized treatment decisions. The test also obtained Medicare reimbursement through the MolDX program, effective April 2025, for serial use in patients with stage II, III, and resectable stage IV colorectal cancer in the adjuvant and recurrence monitoring settings over five years.
In late March, the company launched Cologuard Plus, also covered by Medicare and included in the U.S. Preventive Services Taskforce guidelines as a recommended stool-based screening option. The test features novel biomarkers, improved laboratory processes, enhanced sample stability, and detects CRC and precancerous polyps with even greater sensitivity while reducing false positives by nearly 40% compared to the original Cologuard test. Furthermore, the Cancerguard MCED test is on track to be launched as an LDT soon.
Enhancing Customer Experience: Exact Sciences plans to transform cancer care by providing patients with valuable insights at every step of their diagnosis and treatment. The company is currently working to build the best digital infrastructure and diagnostics. This vision has two main elements: first, enabling patients to take a more proactive role in their care. Second, it makes it easy for physicians to order tests, interpret results and personalize medicine by applying real-world evidence and guideline recommendations.
The combined strength of Exact Nexus, the company’s proprietary technology platform, and EXAS’ commercial capabilities is leading to more patients completing Cologuard every three years, supporting the company’s goal of making screening a routine practice and also closing the screening gap. EXAS has identified more than 100 opportunities with payers and health systems to address the care gaps with Cologuard through large, organized screening programs.
What Concerns Exact Sciences?
Escalating Costs: Exact Sciences’ business has been affected by global macroeconomic conditions. Disruptions in the United States, Europe or other economies, whether from geopolitical tensions or changing international trade policies, could impact global markets, interrupt global supply chains, and lead to inflationary or recessionary effects on the worldwide economy. Additionally, the high-interest-rate environment and limited access to capital markets could strain the company’s suppliers, distributors and key business partners, making it difficult for them to remain viable. All these are creating significant pressure on its profitability as well.
A Tough Competitive Landscape: Given the large market for colorectal cancer screening, Exact Sciences faces numerous competitors, some of which possess significantly greater financial and other resources and development capabilities than the company. Additionally, the hereditary cancer testing market is becoming increasingly competitive with players such as Invitae, Quest Diagnostics and Labcorp. Under such intense market pressures, the company can potentially struggle with growth and profitability if it is unable to compete effectively, risking a decrease in its stock price.
EXAS Stock Estimate Trend
In the past 30 days, the Zacks Consensus Estimate for Exact Sciences’ 2025 earnings has risen 13.8% to 33 cents.
The Zacks Consensus Estimate for 2025 revenues is pegged at $3.16 billion, implying a 14.4% jump from the 2023 reported number.
Key Picks
Some better-ranked stocks in the broader medical space are Masimo (MASI - Free Report) , Phibro Animal Health (PAHC - Free Report) and Envista (NVST - Free Report) .
Masimo has an estimated long-term earnings growth rate of 12.5% compared with the industry’s 9.9%. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 9.17%. MASI shares have rallied 18.7% against the industry’s 15.1% fall in the past year.
MASI sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Phibro Animal Health, sporting a Zacks Rank #1, has an earnings yield of 6.3% against the industry’s -0.3%. Shares of the company have surged 94.4% compared with the industry’s 2.5% growth. PAHC’s earnings outpaced estimates in each of the trailing four quarters, with the average surprise being 27.9%.
Envista, carrying a Zacks Rank #2 (Buy), has an estimated earnings growth rate of 15.2% for fiscal 2026 compared with the S&P 500 composite’s 11.7% growth. Shares of the company have rallied 17.9% compared with the industry’s 2.5% rise. NVST’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 16.50%.