Genomics is the future of medicine. With it, companies are racing to shed light on human health and disease. Over the last two decades, related studies have allowed us to create genetic risk scores. For example, millions of people can get a better idea of developing a disease based on individual genetics. Also, this is creating big opportunity for some of the best genomics stock picks.
“Genomics has given us a more comprehensive understanding of genetic risk factors for complex traits (body mass index, or BMI, for example) and diseases such as diabetes or asthma,” according to the University of Colorado’s Department of Biomedical Informatics. “We can now calculate genetic risk scores, which are individual-level estimates of the cumulative contribution of genetic factors to a specific trait or disease.”
Additionally, genomics could create a potential $157.47 billion market by 2033 from $33.9 billion in 2023, as noted by NovaOneAdvisor.com. And along the way, it could help unlock substantial riches for genomics stock picks.
Illumina (ILMN)
Recent weakness is an opportunity with Illumina (NASDAQ:ILMN).
Improving human health by unlocking the power of the genome, Illumina’s focus on innovation has established the company as a global leader in DNA sequencing and array-based technologies. It serves customers in the research, clinical, and applied markets. And products are used in life sciences, oncology, reproductive health, agriculture, and other emerging segments, as noted on the company’s site.
Also, analysts at Canaccord reiterated their price target of $130 after the company “announced that it has publicly filed a Form 10 registration statement with the SEC in connection with its intended divestiture of GRAIL,” as noted by TheFly.com.
This comes just months after the Federal Trade Commission said the GRAIL acquisition threatened competition in the market for cancer detection kits. The divesture would also put an end to a disastrous merger and would be seen as a positive for Illumina.
Fortunately, earnings haven’t been too shabby. First quarter earnings per share of nine cents was five cents better than expectations. Revenues came in at $1.08 billion as compared to estimate for $1.05 billion.
Twist Bioscience (TWST)
Another hottest genomics stock pick is Twist Bioscience (NASDAQ:TWST). It can “write” up to one million DNA sequences directly onto a silicon chip. These can then be used by drug manufacturers for research and development.
“Twist is leveraging its unique technology to manufacture a broad range of synthetic DNA-based products, including synthetic genes, tools for next-generation sequencing preparation, and antibody libraries for drug discovery and development,” says the company’s website.
With regards to its stock, since bottoming out at around $12.50 in early 2023, Twist Bioscience raced to a recent high of $42.94. While it’s a bit overbought at the moment, and overdue for a near-term pullback, it could see higher highs over the long haul.
Moreover, the company raised its fiscal 2024 guidance outlook and beat second-quarter numbers. In Q2, the company’s revenue of $75.3 million was 25% higher than year-earlier numbers. Also, it saw its net loss narrow 23% year-over-year (YOY) to $45.5 million.
Plus, its net loss per share improved from a loss of $1.04 to 79 cents. TWST sees full-year revenue of $300 million to $304 million, which is above expectations of $293.08 million.
Global X Genomics & Biotechnology ETF (GNOM)
For diversification on the cheap, investors can try Global X Genomics & Biotechnology ETF (NASDAQ:GNOM). With an expense ratio of 0.50%, the ETF holds 41 genome and biotech stocks.
All of these stand to “benefit from further advances in the field of genomic science, such as companies involved in gene editing, genomic sequencing, genetic medicine/therapy, computational genomics, and biotechnology,” as noted by GlobalXETFs.com.
Trading at $10.31 a share, some of its top holdings include Natera (NASDAQ:NTRA), Moderna (NASDAQ:MRNA), CRISPR Therapeutics (NASDAQ:CRSP), Myriad Genetics (NASADAQ:MYGN) and Illumina.
Also, since bottoming out around $8.80, the GNOM ETF hit a recent high of $12.50. Now back to $10.32, I’d like to see it retest its $12.50 high again near term. Longer-term, I’d like to see it again challenge $16.50.
On the date of publication, Ian Cooper did not hold (either directly or indirectly) any positions in the securities mentioned. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
