10 Most Volatile Stocks Under $3 For Day Trading

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

Number of Hedge Fund Holders: 17

Pacific Biosciences of California, Inc. (NASDAQ:PACB) is a biotechnology company specializing in advanced DNA sequencing technologies. It develops and sells long-read and high-throughput sequencing systems used for genomics research, clinical applications, and agricultural biology. Its proprietary HiFi sequencing technology enables high accuracy in detecting genetic variations, structural variants, and epigenetic modifications. The company serves academic institutions, government agencies, pharmaceutical companies, and clinical researchers. Revenue is generated through instrument sales, consumables, and service contracts. PACB’s sequencing solutions are used in applications such as rare disease research, cancer genomics, and microbial and plant genome analysis. The California-based company ranked ninth on our recent list of Top 11 CRISPR Stocks to Invest In.

In Q4 2024, Pacific Biosciences of California, Inc. (NASDAQ:PACB) achieved $39.2 million in revenue, primarily driven by shipments of 23 Revio systems and 7 Vega platforms. Over the course of the year, the company reported $154 million in total revenue, supported by the delivery of 97 Revio systems, of which approximately 45% went to new customers of PacBio instruments. The company also recorded impressive growth in its HiFi sequencing technology, with genomic data output increasing by 81% in 2024. Additionally, consumable revenue rose by 11% YoY to $70.4 million.

As Pacific Biosciences of California, Inc. (NASDAQ:PACB) looks ahead to 2025, revenue is anticipated to range between $155 million and $170 million, reflecting a 6% increase at the midpoint despite challenges from ongoing macroeconomic pressures and uncertainty regarding NIH funding. The company has significantly improved operational efficiency, reducing annual non-GAAP operating expenses by over $75 million and cutting the COGS for Revio systems and consumables by 16% and 22%, respectively. With nearly 15% of 2024 revenues derived from LDT labs or children’s hospitals, the clinical strategy appears promising. Furthermore, management aims to turn the company’s cash flow positive by the end of 2027, supported by $390 million in cash and investments, comfortably surpassing its first debt maturity in August 2029. With an equity beta of 2.01, PACB is one of the most volatile stocks under $3 for day trading.