10 High Growth Healthcare Stocks to Invest in Now

7. Natera, Inc. (NASDAQ:NTRA)

Revenue Growth: 39.88% 

Natera, Inc. (NASDAQ:NTRA) is a leading genetic testing company that specializes in non-invasive prenatal testing, cancer screening, and organ transplant monitoring.

The company reported exceptional financial results in Q3 2024, with revenue reaching $439.8 million, representing a remarkable 64% year-over-year growth. This significant increase was driven by strong volume growth across its product lines, particularly in oncology testing, which saw a 54% year-over-year increase to 137,000 tests. Natera, Inc. (NASDAQ:NTRA)’s gross margins reached a record 62% in Q3 2024, reflecting improved operational efficiency and a favorable product mix shift towards higher-margin offerings like Signatera. This margin expansion, coupled with strong revenue growth, has positioned the corporation to generate positive cash flow, with $34.5 million in cash generated in Q3 2024.

Natera, Inc. (NASDAQ:NTRA) recently published groundbreaking data from the GALAXY study in Nature Medicine, demonstrating Signatera’s ability to predict overall survival in colorectal cancer patients. This clinical validation strengthens Signatera’s position as a leading MRD test and supports its potential for wider adoption in cancer care. Based on its strong performance, the corporation has raised its full-year 2024 revenue guidance from $1.61 billion to $1.64 billion, implying approximately 50% year-over-year growth.

As of Q3 2024, 62 hedge funds held stakes in the company, according to the Insider Monkey database. Analysts have a consensus Strong Buy rating on the stock, with a 12-month price target averaging $173.00, ranging between $135.00 and $209.00. This indicates a modest potential upside of 3.43% from its current price of $167.26, reflecting positive expectations for the stock’s near-term performance.