Have you considered adding a medical products stock to your holdings? There are risks to consider, but the rewards could be considerable for patient investors of Exact Sciences (NASDAQ:EXAS) stock.
In the long term, Exact Sciences could improve its financials and deliver value to the shareholders, while also potentially helping to save the lives of cancer patients.
Exact Sciences specializes in molecular diagnostics and screening, with a specific focus on cancer detection. As we’ll see, Exact Sciences has a portfolio of high-tech products, including a new one that could enhance medical practitioners’ ability to identify the right cancer treatments for their patients.
Exact Sciences’ financial profile isn’t perfect. That’s why the company’s investors have to accept some risk. It’s also the reason EXAS stock gets a “B” rating instead of an “A” rating. With that in mind, let’s delve into Exact Sciences’ growing product portfolio.
Exact Sciences Is an Innovator in Cancer Detection
Before considering a share position in Exact Sciences, familiarize yourself with the company’s testing products portfolio. A good starting point would be two products from Exact Sciences, Cologuard and OncoExTra.
Cologuard is a DNA-based colorectal cancer screening test; it’s designed for individuals aged 45 or older. Cologuard is convenient and noninvasive and can be used at home. Best of all, it “finds colon cancer even in early stages when it is more treatable.”
Exact Sciences also recently added a therapy selection test called OncoExTra to its product offerings. It’s a “sequencing (NGS), comprehensive DNA and RNA based genomic test providing doctors and their patients a complete molecular picture of the patient’s cancer.”
OncoExTra could truly be a game-changer as it can help medical practitioners get a more complete genomic profile of their patients. Cancer patients may receive more personalized treatment options.
Check Exact Sciences’ Financials Before Considering EXAS Stock
Some prospective investors might consider it a deal-breaker that Exact Sciences isn’t currently a profitable business. However, the company is improving its bottom line.
Exact Sciences incurred a net earnings loss of $127.7 million, or 72 cents per share, during 2022’s fourth quarter. That’s much better than the net loss of $220.6 million, or $1.28 per share, from the year-earlier quarter. It’s also better than that loss of 90 cents per share that Wall Street had expected.
Exact Sciences generated $553 million in quarterly revenue, up 17% year over year. Besides, the company “surpassed 12 million cumulative people tested for cancer, including 10 million with Cologuard,” and that’s something the team at Exact Sciences can certainly be proud of.
What You Can Do Now
Some investors might feel that it’s risky to invest in a medical products business that’s not profitable right now. Therefore, not everyone will want to take a share position in Exact Sciences.
Yet, Exact Sciences is growing its revenue, and the company could close its profitability gap at some point. There’s no denying that Exact Sciences’ best-in-class diagnostic products provide value to the medical community. EXAS stock gets a “B” rating and some risk-tolerant investors might consider taking a moderately sized share position today.
On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.