Joe DiMenna’s Stock Portfolio: Top 10 Stocks to Buy

7. Natera, Inc. (NASDAQ:NTRA)

Number of Hedge Fund Holders as of Q4: 77

Zweig-DiMenna Associates’ Equity Stake: $36.31 Million 

Natera, Inc. (NASDAQ:NTRA), based in Austin, Texas, is a leading clinical genetic testing company specializing in non-invasive, cell-free DNA testing for women’s health, oncology, and organ health. As of Q4 2024, Zweig-DiMenna Associates held 229,365 shares of the company, valued at approximately $36.31 million, making it the firm’s seventh-largest holding. The stock has seen growing interest from institutional investors, with 77 hedge funds tracked by Insider Monkey holding stakes worth over $4.29 billion by the end of the fourth quarter, a notable increase from 62 funds in Q3. This rise in hedge fund participation suggests increasing confidence in Natera’s long-term potential and growth prospects.

Natera, Inc. (NASDAQ:NTRA) recently announced that it will release its Q4 and full-year 2024 financial results on February 27, 2025, followed by a conference call and webcast. The company’s latest earnings report for the quarter ended September 2024 exceeded expectations, with revenue reaching $440 million, 22% higher than analyst forecasts, while reported losses of $0.26 per share were lower than anticipated. Looking ahead, analysts predict the company will generate $1.79 billion in revenue for 2025, reflecting a 17% year-over-year increase, while losses are expected to decline by 20% to $1.30 per share. However, despite the optimistic revenue outlook, analysts slightly raised loss projections, indicating a mixed consensus on the company’s near-term profitability. Following these results, the consensus price target for Natera, Inc. (NASDAQ:NTRA) increased by 18% to $158 per share, with the most bullish analyst valuing the stock at $185 and the most bearish at $37, highlighting the uncertainty surrounding its future performance.

Despite the variation in price targets, the company remains an attractive investment due to its strong revenue growth, leadership in genetic testing, and expanding market presence. The company’s ability to outperform expectations while steadily reducing losses suggests it is on a solid trajectory toward profitability. With continued advancements in genetic testing and growing demand for precision medicine, Natera, Inc. (NASDAQ:NTRA) is well-positioned to capitalize on long-term industry trends, making it a compelling stock for investors seeking exposure to the healthcare innovation sector.