10 Most Promising Cancer Stocks According to Hedge Funds

8. Guardant Health, Inc. (NASDAQ:GH)

Average Analyst Upside: 44.9%

Number of Hedge Fund Holders: 28

Guardant Health, Inc. (NASDAQ:GH) is a prominent company in precision oncology, providing advanced cancer-related services like blood tests, data analysis, and global insights.

In the third quarter, Guardant Health, Inc. (NASDAQ:GH) reported $191.5 million in revenue, a 34% year-over-year increase that surpassed expectations of $170.4 million. Precision oncology revenue surged by over 35%, while development services grew by 34%. The company also raised its full-year revenue forecast to a range of $720 million to $725 million, reflecting a nearly 4% increase at the midpoint from its previous guidance. Looking ahead to next year, Guardant Health, Inc. (NASDAQ:GH) anticipates a 20% growth in clinical test volume, driven by Shield and a pivotal growth phase for Guardant Reveal.

On November 7, Leerink Partners raised its price target for Guardant Health, Inc. (NASDAQ:GH) to $60 from $50, maintaining its Outperform rating. This update followed Guardant’s strong quarterly performance mentioned above, which addressed investor concerns around potential slowing in the core G360 business and the outlook for the Shield LBx CRC screening assay. The G360 segment showed modest sequential growth, with expectations for further acceleration into 2025. Additionally, the Shield LBx CRC screening assay garnered attention after receiving a $920 Medicare reimbursement rate this quarter, with an Advanced Diagnostic Laboratory Test (ADLT) rate of $1,495 anticipated in 2025.