7. Exact Sciences Corporation (NASDAQ:EXAS)
Upside potential as of November 14: 44.04%
Exact Sciences Corporation (NASDAQ:EXAS), located in Madison, Wisconsin, offers cancer screening and diagnostic test products in the United States and around the world. Exact Sciences approaches cancer testing in a number of ways. Presently available products include Oncotype DX, a tissue-based genetic profiling platform widely used in breast cancer, and Cologuard, the company’s flagship stool-based screening test for colorectal cancer, or CRC.
Exact Sciences Corporation (NASDAQ:EXAS) hopes to increase the precision and speed of cancer identification by utilizing AI in genetic testing and biomarker analysis, giving patients access to more individualized and efficient treatment options.
Exact Sciences Corporation (NASDAQ:EXAS) generated record revenue and cash flow, increased adjusted EBITDA, and an advanced pipeline in the third quarter of 2024. The company’s sales climbed 13% year over year to $709 million in Q3 2024, fueled by significant growth in Cologuard screening sales and consistent success in Precision Oncology services. The operating cash flow was $139 million, up 469.43% YoY, with free cash flow of $113 million.
In the latest quarter, Exact Sciences Corporation (NASDAQ:EXAS) showed encouraging results for its blood-based test with 88% cancer sensitivity and received FDA approval for Cologuard Plus, its next-generation colorectal cancer screening test. It also got Oncodetect, a test for tracking molecular residual disease and recurrence, accepted for peer-reviewed publication.
Tycho Peterson, an analyst at Jefferies, increased the price target for Exact Sciences Corporation (NASDAQ:EXAS) from $84 to $85 on November 6, 2024, and maintained a Buy rating on the shares. The analyst, who maintains shares as a “top pick,” notes that although the Q3 2024 results “brought plenty of drama” with a 1% revenue shortfall and a 3% projection decrease, the long-term plan is still in place and there were no significant changes to the 2025 setup, including Cologuard Plus, MRD, and critical blood data.
Columbia Acorn Fund stated the following regarding Exact Sciences Corporation (NASDAQ:EXAS) in its Q3 2024 investor letter:
“Exact Sciences Corporation (NASDAQ:EXAS) is a leading provider of non-invasive cancer screening and therapy selection tests with stool-based test Cologuard. The stock rebounded in the quarter after underperforming last quarter, when we added to the position on weakness. Quarterly results were better than expected, including a material upside surprise on profitability. Management also provided an update for its blood-based cancer screening test, and the initial results suggest potential for equivalent performance at a better cost profile versus peers. While we continue to believe blood-based testing is inferior to Cologuard, approval of this test could accelerate the company’s revenue growth and remove a sentiment overhang. Overall, Exact Sciences remains in the early innings of penetrating a $20 billion-plus total addressable market, with potential for double-digit revenue growth and expanding margins for the foreseeable future, supported by the launch of Cologuard Plus, an even more effective test.”
