Should You Invest in Exact Sciences Corp. (EXAS)?

Parnassus Investments, an investment management company, released the “Parnassus Growth Equity Fund” fourth quarter 2024 investor letter. A copy of the letter can be downloaded here. In the fourth quarter, the Fund (Investor Shares) returned 4.85% (net of fees) underperforming the Russell 1000 Growth Index’s 7.07% gain. For the year, the fund returned 26.85% compared to Russell 1000 Growth’s 33.36% return. In addition, please check the fund’s top five holdings to know its best picks in 2024.

In its fourth quarter 2024 investor letter, Parnassus Growth Equity Fund emphasized stocks such as Exact Sciences Corporation (NASDAQ:EXAS). Exact Sciences Corporation (NASDAQ:EXAS) provides cancer screening and diagnostic test products. The one-month return of Exact Sciences Corporation (NASDAQ:EXAS) was -7.70%, and its shares lost 26.29% of their value over the last 52 weeks. On March 19, 2025, Exact Sciences Corporation (NASDAQ:EXAS) stock closed at $45.70 per share with a market capitalization of $8.49 billion.

Parnassus Growth Equity Fund stated the following regarding Exact Sciences Corporation (NASDAQ:EXAS) in its Q4 2024 investor letter:

“We bought two new positions in biotechnology company Vertex Pharmaceuticals and genetic testing company Exact Sciences Corporation (NASDAQ:EXAS). Exact Sciences, a cancer diagnostic company, is approaching profitability and should be able to continue to grow its top and bottom line due to its leadership in non-invasive colorectal cancer tests and entry into new markets like cancer recurrence monitoring.”

Why Exact Sciences (EXAS) is Crashing?

A research team in a laboratory discussing the results of a lab screening test for biomarkers.

Exact Sciences Corporation (NASDAQ:EXAS) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 49 hedge fund portfolios held Exact Sciences Corporation (NASDAQ:EXAS) at the end of the fourth quarter compared to 41 in the third quarter. While we acknowledge the potential of Exact Sciences Corporation (NASDAQ:EXAS) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

In another article, we discussed Exact Sciences Corporation (NASDAQ:EXAS) and shared Artisan Mid Cap Fund’s views on the company. In addition, please check out our hedge fund investor letters Q4 2024 page for more investor letters from hedge funds and other leading investors.

READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks.

Disclosure: None. This article is originally published at Insider Monkey.