10 Best Genomics Stocks To Buy Right Now

Published on November 19, 2024 at 12:21 pm by Fatima Gulzar in Industries, Lists, News

In this article, we will discuss: 10 Best Genomics Stocks To Buy Right Now.

Genomics is the study of genes and how they function. Many rapidly growing companies are emerging in the genomics field as technological advances substantially reduce the cost, accuracy, and time required to map a human being’s genome.

Investors in innovation, like Cathie Wood, the CEO of ARK Investment Management, believe that these developments are bringing about a “Genomic Revolution.” She stressed the potential of genomics and urged investors to see beyond conventional market benchmarks to seize revolutionary growth. On the eToro’s Digest & Invest podcast on October 21, 2024, Wood emphasized that concentrating only on the most prominent indexes may restrict exposure to ground-breaking innovation. She stated that reduced AI training costs have boosted genomics productivity, opening the door to important breakthroughs like gene editing that targets diseases. She is nevertheless optimistic about these stocks’ long-term worth, despite the present market reluctance and cash flow-driven tendencies made worse by ongoing high interest rates. According to Wood, avoiding this industry may result in missed opportunities as it progresses from development that relies heavily on investments to future profitability. She believes the market is changing and that early adopters will benefit from the convergence of genomics and AI.

Nonetheless, there have been encouraging breakthroughs from a number of genomic companies in 2024, and investors have seen financial rewards as the biotechnology sector of the broader market has risen by 29.33% since the beginning of the year.

According to Grand View Research, the global genomics market was estimated to be worth $32.65 billion in 2023 and is projected to grow at a compound annual growth rate of 16.5% between 2024 and 2030. Factors including the rising need for customized treatment, gene therapy, drug development, rising cancer rates, and a notable surge in consumer genomics demand in recent years are all contributing to the genomics market’s expansion. The pharmaceutical and biotechnology companies segment dominated the global genomic market in 2023, as per the aforementioned research. In terms of market share, North America held the biggest share in 2023 (42.65%), while Asia Pacific is anticipated to develop at the fastest rate during the forecast period.

The fields of gene editing and cell and gene therapies (CGTs) are also developing quickly. The UK approved Casgevy for sickle cell disease and β-thalassemia, pointing out the potential of CRISPR gene editing. According to Deloitte’s research report, the growing market for CGTs, from US$5.3 billion in 2022 to $19.9 billion in 2027, signals a shift towards customized advanced medicine despite high costs leading innovative business models. Furthermore, as per the report, GenAI can analyze a variety of information, such as clinical history, genomes, and social determinants of health, to produce deeper insights that have the potential to completely transform the way healthcare is delivered.

Looking forward, Chris Garabedian, CEO of Xontogeny and Venture portfolio manager at Perceptive Advisors, stated:

“I think 2024 will be a transition year, a little more carnage left and a clearing. There are signs of hope this year, and after the election and that uncertainty is behind us, I think we’re going to start to see 2025 look healthy.”

With that said, here are the 10 Best Genomics Stocks To Buy Right Now.

A scientist in a lab conducting research on cell-based therapeutics and biotechnology.

Methodology:

We sifted through holdings of Genomics ETFs and online rankings to form an initial list of 20 genomics stocks. Then we selected the 10 stocks that had the highest upside potential. The stocks are ranked in ascending order of the upside potential, as of November 14.

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10. Twist Bioscience Corporation (NASDAQ:TWST)

Upside potential as of November 14: 21.51%

Twist Bioscience Corporation (NASDAQ:TWST) is a synthetic biology company. It creates a revolutionary platform for DNA synthesis with the objective of industrializing biological engineering. Utilizing a proprietary semiconductor-based synthetic DNA manufacturing process, the company’s DNA synthesis platform synthesizes DNA on silicon rather than conventional, well-plastic plates, resulting in the faster and more economical production of high-quality synthetic DNA. It also overcomes inefficiencies and powers rapid, cost-effective, high-throughput synthesis, allowing researchers to seize opportunities quickly. Geographically, the United States accounts for the majority of company revenue.

Twist Bioscience Corporation (NASDAQ:TWST) has achieved great progress, launching new products, forming new collaborations, and securing crucial financial arrangements. On October 22, 2024, the company announced that it entered into a royalty purchase agreement with XOMA Royalty (NASDAQ: XOMA). As per the agreement, XOMA will give TWST $15 million in cash in exchange for half of the future milestone and royalty rights from ongoing service agreements with biopharmacies and antibody research.

The stock is attractive due to Twist Bioscience Corporation (NASDAQ:TWST)’s steady revenue growth and improved margins. The company’s Q3 2024 revenue of $81.5 million exceeded its guidance of around $77 million, with a 27.81% YoY growth. The orders came to $85.3 million, and the strong order volume helped the gross margin to reach 43.3%, above the predicted 41-42%. The stock has surged by over 18% this year so far.

On October 1, 2024, Evercore ISI kept its Outperform rating on Twist Bioscience Corporation (NASDAQ:TWST) and increased its price target from $52 to $56. According to Evercore, usage in MedTech is still up through Q3, and the capital expenditure prognosis for the upcoming year is still “healthy.” The analyst tells investors in MedTech and Tools Q3 preview that while bioprocess trends in life science tools are expected to improve in the second half, the focus of discussion is on the instrument outlook and China stimulus given the recent surge in the area’s stocks.

9. Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN)

Upside potential as of November 14: 35.36%

Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) finds, creates, and markets drugs to combat inflammation, cancer, heart disease, and eye illness. Low-dose Eylea and Eylea HD, which are approved for wet age-related macular degeneration and other eye conditions; Dupixent, which is used in immunology; Praluent, which lowers LDL cholesterol; Libtayo, which is used in cancer; and Kevzara, which is used in rheumatoid arthritis, are among the company’s marketed products.

There are now about 40 product candidates in the company’s varied clinical portfolio, and numerous pivotal trials are in progress. Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) has earlier-stage partnerships that contribute new technology to the pipeline, such as Crispr-based gene editing (Intellia) and RNA interference (Alnylam), and it is working independently and with Sanofi and other partners to produce monoclonal and bispecific antibodies.

The Regeneron Genetics Center is an AI-powered genetic research facility that uses one of the biggest genetic research databases in the world to help create novel treatments.

The third quarter 2024 financial report from Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) was impressive. The company was twice as successful in surpassing quarterly revenue and total earnings per share. Due to higher sales of its medications, revenue climbed by 11% year over year.

Baron Health Care Fund stated the following regarding Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) in its Q3 2024 investor letter:

“We purchased Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN), a biopharmaceutical company that was built on a foundation in basic scientific research and antibody development. The company has successfully developed several blockbuster medicines, including Eylea and Eylea HD for retinal diseases (such as wet age-related macular degeneration, diabetic macular edema, and diabetic retinopathy) and Dupixent for immunological and inflammatory diseases (such as atopic dermatitis, asthma, and COPD). While Eylea is nearing the end of its patent life and faces potential biosimilar competition, the company has been transitioning patients to Eylea HD, which is a higher dose, longer-acting formulation of Eylea, and Dupixent is growing rapidly through indication expansion. Beyond the current product portfolio, Regeneron has an exciting new product pipeline with over 35 candidates in various stages of development, including a novel treatment for treating severe food allergy, a combination checkpoint inhibitor therapy for melanoma, lung cancer and other solid tumors, biospecific antibodies for blood cancers, and Factor XI antibodies for blood clot prevention, among others. Based on Regeneron’s track record of success discovering and developing new drugs, we are optimistic the pipeline will deliver some successes, which we think will drive upside in the stock.”

On November 15, 2024, Wolfe Research began covering Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) with a price objective of $1,150 and an Outperform rating. Concerns about Eylea patent lawsuits had driven Regeneron down from its peak, and the company believes that its share price is now at a “particularly attractive entry point, with “limited downside risk.” “Its bullish outlook is based on the belief that peer-leading growth, through either successful launches or defensive positioning, will be rewarded in 2025,” Wolfe continues.

8. BioMarin Pharmaceutical Inc. (NASDAQ:BMRN)

Upside potential as of November 14: 41.25%

BioMarin Pharmaceutical Inc. (NASDAQ:BMRN) focuses on treatments for rare diseases. Through their joint venture, Genzyme and BioMarin market Aldurazyme, while BioMarin sells Naglazyme, Vimizim, and Brineura on its own. Additionally, BioMarin sells Palynziq and Kuvan to treat PKU, a rare metabolic disorder. In 2021, VOXZOGO (vosoritide) received approval for achondroplasia. In 2022 and 2023, BioMarin’s Roctavian (a gene therapy for hemophilia A) received approval in Europe and the US, respectively.

It is challenging to avoid historical analogies with Genzyme (bought by Sanofi) as BioMarin Pharmaceutical Inc. (NASDAQ:BMRN) builds a portfolio of genetic disease therapies. Despite having several authorized treatments, BioMarin spent years in the red due to commercialization and R&D costs, but analysts have faith in the long-term, profitable potential of its current line of drugs. BioMarin is in a strong position because of its extensive internal pipeline and capacity to add expansion through strategic acquisitions.

BioMarin Pharmaceutical Inc. (NASDAQ:BMRN)’s third quarter of 2024 experienced revenues of $746 million, a 28% YoY growth primarily due to the robust VOXZOGO contributions from new patient beginnings across all markets. During the quarter, VOXZOGO’s revenue grew 54% year over year due to strong demand, while the portfolio’s revenues from enzyme therapies increased 27% year over year. In Q3 2024, the company generated $221 million in operating cash flows, a 63% increase YoY.

BioMarin Pharmaceutical Inc. (NASDAQ:BMRN) reaffirmed its 2027 revenue objective of about $4 billion and increased its full-year 2024 outlook due to the high demand for enzyme treatments and VOXZOGO.

On November 15, 2024, Wolfe Research commenced coverage of BioMarin Pharmaceutical Inc. (NASDAQ:BMRN) with an Outperform rating and a price target of $95. In a research note, the analyst informs investors that “there is a lot to like about shares at current levels,” citing the company’s new management, strong growth potential for lead asset Voxzogo, and its legacy Enzyme Replacement Therapy business, as well as the low downside risk following the recent share pullback.

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.”

6. Pacific Biosciences of California, Inc. (NASDAQ:PACB)

Upside potential as of November 14: 47.48%

Pacific Biosciences of California, Inc. (NASDAQ:PACB) is at the forefront of long-read sequencing technology, which maps the entire genome using longer DNA segments. Despite the completion of the Human Genome Project in 2003, PacBio proved the value of its HiFi whole-genome sequencing method by assisting researchers in completing the 8% of the genome that the previous effort had overlooked.

Omniome, Inc.’s Sequencing by Binding (SBB) chemical was acquired by Pacific Biosciences of California, Inc. (NASDAQ:PACB) in 2021. A different method from short-read sequencing, SBB is intended to read repetitive, challenging-to-read stretches of the genome. Scientists who want the benefits of both short- and long-read sequencing may have an alternative in PacBio’s HiFi sequencing and SBB chemistry when appropriately combined.

The Americas account for the majority of the company’s sales, with Asia-Pacific, Europe, the Middle East, and Africa following closely behind. In Q3 2024, PacBio’s consumables sales increased from $16.9 million YoY to $18.5 million, a record quarter for Onso. Furthermore, due to efficient cost control and operational improvements, non-GAAP operating expenditures dropped to $62.4 million from $90.9 million YoY, and the non-GAAP net loss dropped from $67.9 million to $46.0 million.

Pacific Biosciences of California, Inc. (NASDAQ:PACB) made significant strategic advances with the launch of its SPRQ chemistry and the Vega benchtop sequencer, which aimed to improve data accuracy while lowering sequencing costs. To strengthen its technological offerings and presence in the precision medicine market, the company also formed key alliances and partnerships, such as joining the 10x Genomics Compatible Partner Program and setting up a collaborative laboratory in Singapore.

Looking forward, the management of Pacific Biosciences of California, Inc. (NASDAQ:PACB) is hopeful that the company will resume growth in 2025 as a result of its strategic efforts, financial position strengthening, and reduction of cash burn. The company is still dedicated to reaching cash flow positivity by the end of 2026, and it plans to do so by utilizing its strategic alliances and innovative product releases.

5. CRISPR Therapeutics AG (NASDAQ:CRSP)

Upside potential as of November 14: 48.00%

CRISPR Therapeutics AG (NASDAQ:CRSP) is a gene-editing firm that focuses on the development of CRISPR/Cas9-based therapies. CRISPR/Cas9 is a groundbreaking technology for precisely modifying specific genomic DNA sequences. The company’s primary goal is to treat genetically specified disorders with this technique. This technology precisely breaks DNA to disrupt, delete, correct, and insert genes to treat genetically specified disorders, which is the focus of the company’s unique platform.

CRISPR Therapeutics AG (NASDAQ:CRSP)’s first licensed medication, Casgevy, was created in partnership with Vertex Pharmaceuticals and addresses two conditions with significant unmet medical needs: sickle-cell disease and transfusion-dependent beta-thalassemia. The company is developing several gene editing projects in the fields of cardiovascular disease, immuno-oncology, and a stem cell-derived treatment for Type 1 diabetes.

Through partnerships, some of the expenses associated with clinical development can be covered while CRISPR Therapeutics AG (NASDAQ:CRSP) receives milestones and financial benefits from the advancement of therapeutic proposals.

The company maintains a strong cash position with nearly 1.9 billion in cash and continues to advance its diverse pipeline, including CAR-T and in-vivo therapies.

Analyst Salim Syed of Mizuho Securities has remained enthusiastic about CRISPR Therapeutics AG (NASDAQ:CRSP) stock, with a Buy rating on November 6, 2024. According to the analyst, Casgevy’s price in Saudi Arabia seems to be about $2 million per patient, which is beneficial and more than earlier projections. Strong revenue potential can be seen by this pricing dynamic, which is viewed favorably. Furthermore, Casgevy’s favorable reception in Washington and its strategic alliance with Lonza for global manufacturing, which is expected to satisfy rising demand, support the company’s outlook. Additionally, ARK Invest’s recent acquisitions of CRSP shares show faith in the company’s prospects for the future, which is reinforced by ARK’s recent remarkable performance.

4. Fulgent Genetics, Inc. (NASDAQ:FLGT)

Upside potential as of November 14: 54.72%

Fulgent Genetics, Inc. (NASDAQ:FLGT) is a technology company that specializes in genetic testing and provides clinicians with clinically meaningful diagnostic information. The firm is involved in both therapeutic development and laboratory services. Technical laboratory services and expert interpretation of test findings by certified medical professionals are two aspects of the laboratory services industry that contribute significantly to income. Developing medication candidates to treat a variety of tumors is the main goal of its therapeutic development segment. The two geographic categories are foreign and the United States, which produces the vast majority of the revenue.

The company’s major focus has once again shifted to its core genetic testing business, which does not include COVID-19 testing. Fulgent Genetics, Inc. (NASDAQ:FLGT) offers cancer diagnostics, newborn genetic testing, and genetic disease carrier screening. In April 2022, the company purchased Inform Diagnostics, a leading independent pathology lab.

Fulgent Genetics, Inc. (NASDAQ:FLGT) is evolving from a diagnostic company to a comprehensive healthcare company that specializes in oncology. Despite its historical reliance on COVID-19 test revenue, Fulgent has a stable financial sheet and no debt, and its core business has risen dramatically.

Fulgent Genetics, Inc. (NASDAQ:FLGT) reported $71.7 million in total sales in its third-quarter 2024 financial release, with core revenue increasing 9% year over year. The company earned $9.4 million in non-GAAP profits and $0.4 million in adjusted EBITDA income despite a $14.6 million GAAP loss. FLGT’s cash position is strong, with $815.4 million in cash, cash equivalents, and investments.

The company is moving forward with preclinical research for FID-022 and its clinical trials, including the Phase 2 trial of FID-007 for head and neck cancer. Fulgent Genetics, Inc. (NASDAQ:FLGT) is confident in its full-year core sales projection of $280 million and higher earnings per share.

3. Biogen Inc. (NASDAQ:BIIB)

Upside potential as of November 14: 58.79%

Biogen Inc.’s (NASDAQ:BIIB) approach can be traced back to the 2003 merger of Idec (the traditional blood cancer medication Rituxan) and Biogen (Avonex, which treats multiple sclerosis, or MS). By adding the popular Spinraza for spinal muscular atrophy, or SMA, a rare neuromuscular condition, the company broadened its neurology portfolio beyond MS.

Given the decline in MS revenue and the rise in new drugs for rare diseases, depression, and Alzheimer’s, analysts view Biogen Inc. (NASDAQ:BIIB) as a company undergoing a shift. Numerous therapeutic candidates from the company are undergoing phase 3 trials in the areas of immunology, neurology, and rare disorders. Rituxan and the next-generation antibodies Ocrevus (for multiple sclerosis) and Gazyva (for cancer) are currently commercialized under a partnership with Roche. Biogen sells a number of medications for multiple sclerosis, such as Vumerity, Tecfidera, Tysabri, and Plegridy. Biogen’s more recent offerings are Qalsody (ALS, Ionis), Zurzuvae (postpartum depression, Sage), Skyclarys (Friedreich’s Ataxia, Reata), Leqembi (Alzheimer’s, with partner Eisai), and Spinraza (SMA, with partner Ionis).

The third-quarter 2024 financial results exceeded market consensus projections in terms of revenue and adjusted EPS. Biogen Inc.’s (NASDAQ:BIIB) performance was improved by its control over operational costs and tax rate, even though its gross margin decreased. Effective cost control and investments in new product launches have contributed to the management’s improved EPS projection for 2024, which is encouraging.

Biogen Inc. (NASDAQ:BIIB) also benefits from its strong pipeline, which shows promise in areas like lupus and Alzheimer’s medicines. The company’s financial stability is increased by its ability to sustain strong cash flow from its core legacy products in spite of competition.

On November 15, 2024, Baird maintained an Outperform rating on Biogen Inc. (NASDAQ:BIIB) and increased the price target from $294 to $300.

2. Ionis Pharmaceuticals, Inc. (NASDAQ:IONS)

Upside potential as of November 14: 64.11%

Ionis Pharmaceuticals, Inc. (NASDAQ:IONS) is an industry leader in antisense technology for drug discovery and development. Cardiovascular, metabolic, neurological, and uncommon disorders are among the many ailments that are the focus of its extensive clinical and preclinical pipeline. Spinraza was introduced to the market by Ionis and partner Biogen in 2016 as a treatment for spinal muscular atrophy, a rare neuromuscular disorder. In 2023, Biogen introduced the ALS medication Qalsody. Through its cardiovascular-focused subsidiary Akcea, Ionis introduced two more medications to the market: Waylivra (Europe, 2019) and Tegsedi (2018), a medication for ATTR amyloidosis. In 2024, Ionis and AstraZeneca introduced Wainua, a medication for polyneuropathy.

As a pioneer in RNA-based treatments, Ionis Pharmaceuticals, Inc. (NASDAQ:IONS)’ Spinraza, a medication for spinal muscular atrophy sold by partner Biogen, is the first to become a blockbuster. Gene editing and gene therapy pipelines at several companies, as well as RNA interference technologies from Alnylam, Arrowhead, and Novo Nordisk (Dicerna), pose a serious threat to the company’s antisense oligonucleotide, or ASO, technology. However, Ionis has created a vast pipeline of potential new medications that are quickly approaching the market.

The UK’s approval of eplontersen resulted in substantial financial gains and a favorable EMA opinion. Furthermore, a strong growth trajectory is suggested by the expected approval of olezarsen for familial chylomicronemia syndrome and the forthcoming data releases for several other medications in their late-stage trials.

Based on Ionis Pharmaceuticals, Inc. (NASDAQ:IONS)’ recent advances and financial performance, Joseph Stringer rated it as a Buy on November 7. Even though the company’s total revenues were just less than Stringer’s own prediction, they nevertheless exceeded the mainstream projections. Ionis has also achieved great strides in its clinical pipeline, especially with the alignment on the design of the Phase 3 trial for its medicine ION582, which targets Angelman Syndrome and is anticipated to start in the first half of 2025.

Furthermore, by the end of 2024, Ionis expects significant future milestones, including the possible approval and introduction of Olezarsen in the treatment of familial chylomicronemia syndrome (FCS). The revised year-end cash estimate of $2.2 billion further demonstrates the company’s strong financial standing. Together, these factors support Stringer’s Buy recommendation for Ionis Pharmaceuticals, Inc. (NASDAQ:IONS).

1. 10x Genomics, Inc. (NASDAQ:TXG)

Upside potential as of November 14: 68.61%

10x Genomics, Inc. (NASDAQ:TXG) is a U.S.-based life science technology company. Its solutions include biological system analysis software, consumables, and devices. The company offers a variety of products, such as informatics software, chromium controllers, reagent kits, and 10x-compatible products. Consumables provide for the majority of its revenue.

10x Genomics, Inc. (NASDAQ:TXG)’s strong portfolio of intellectual property and the widespread recognition of its products show its commitment to innovation. The company has recently placed a high priority on technological development, launching technologies that aim to provide researchers with affordable and adaptable solutions. This includes tools like the GEM-X Flex and revolutionary product lines made to satisfy changing needs in research. For its competitive advantage and market conquest, it is essential to continuously improve its technology products.

Strong consumables demand in Q3 2024 contributed to the company’s noteworthy 70% gross margin growth over the previous year’s 62%. The net loss for the quarter was $35.8 million, down from $93 million YoY. Operating expenses were significantly reduced from $147.9 million in Q3 2024 to $176.6 million in Q3 2023, which led to this improvement.

Leerink Partners analyst Puneet Souda reaffirmed his Buy rating on 10x Genomics, Inc. (NASDAQ:TXG) on October 30, 2024, with a $25.00 price target. The company’s strong single-cell and spatial product portfolios remain industry leaders despite recent interruptions brought on by a major reorganization of the sales force that impacted 40% of US clients and a difficult market climate. Despite the short-term challenges, the reorganization is thought to be necessary for long-term growth. The management of the company seems to be managing the transition well, even if the consequences of these changes are anticipated to last until the middle of 2025.

Additionally, the launch of new products has resulted in reduced prices per sample and cell, which could put short-term pressure on revenues but should eventually be offset by higher volumes as per the analyst. Stable Xenium adoption and robust Visium HD ordering rates demonstrate the continued high demand for spatial products. These factors, along with management’s attempts to increase sales productivity and fill critical positions, imply that the most recent quarter might be a low point before a slow rebound starts in 2025, as per the analyst.

The Brown Capital Management Small Company Fund stated the following regarding 10x Genomics, Inc. (NASDAQ:TXG) in its first quarter 2024 investor letter:

“10x Genomics, Inc. (NASDAQ:TXG) is a leading life-science technology company developing and selling instruments, consumables and software for analyzing gene expression in cells. Gene expression controls the functioning of a cell and is fundamental to developing biological insights and advancing human health. 10x tools comprise three platforms: the original Chromium platform for analyzing loose single cells, which contributes the bulk of company revenue; the Visium platform for spatial analysis of tissue sample; and the recently released Xenium platform for subcellular spatial mapping. They are differentiated by their resolution, efficiency, accuracy, throughput, repeatability and simplicity. The tools are advancing academic research, particularly in the areas of oncology, immunology and neuroscience.

10x Genomics reported mixed fourth quarter results in mid-February, with revenue above expectations, but earnings falling short. However, as noted above, management’s revenue guidance of 8-12% growth for 2024 was a meaningful deceleration from 20% in 2023. Over the past 12-18 months, 10x Genomics has cemented itself as the leader of not only single-cell analysis, with its original Chromium platform, but also in spatial analysis. The company had successful launches of its Visium instrument in late 2022 and its new Xenium platform in early 2023. In addition, 10x Genomics defended its intellectual property in 2023, resulting in Nanostring, 10x’s main spatial competitor, filing for bankruptcy in February 2024. 10x Genomics is in a strong position to push the boundaries of life sciences and capitalize on research spending. We remain confident 10x Genomics has a strong opportunity for growth ahead.”

While we acknowledge the potential of the 10x Genomics, Inc. (NASDAQ:TXG), our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than TXG but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

Disclosure: None. 10 Best Genomics Stocks To Buy Right Now is originally published on Insider Monkey. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.