Why Grail (GRAL) Stock Is Jumping Today

Grail (GRAL) is rallying 15% and set a new all-time high after Quest Diagnostics (DGX) and GRAL announced earlier today that they had made a deal. Grail provides Galleri, a blood test that detects many types of cancers in their early stages. Quest is one of the leading providers of medical diagnostic testing and services in the U.S.

Grail’s Deal With Quest

Under the agreement, healthcare providers will be able to order Galleri “directly from Grail through the Quest Diagnostics connectivity system.” The system enables healthcare providers to obtain the results of lab tests via Quest’s lab portal “and more than 900 electronic health record (EHR) systems,” the companies explained.

Close-up of a scientist in a lab conducting tests on a humanized immunoglobulin G1.

Also noteworthy is that “More than 500,000 providers used the Quest connectivity system last year,” Quest and Grail reported.

As a result of the agreement, physicians will find it easier to order Galleri, and patients will be able to undergo “the test at any of Quest’s approximately 7,400 patient access points nationwide” without bringing a test kit with them, companies explained.

“We believe this integration will help to make it easier to incorporate the Galleri test into routine exams to help screen for cancer before it becomes symptomatic when outcomes may be improved.” GRAL President Josh Ofman said in a statement.

While we acknowledge the potential of GRAL, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than GRAL but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: The author owns shares of GRAL but has no intention of trading them in the next 48 hours. This article is originally published at Insider Monkey.