Hiroshi Watanabe
Since I last covered Exact Sciences (NASDAQ:NASDAQ:EXAS) back in August 2021 it is down by around 35%, it is trading at around $58.75 as per the chart below. This thesis aims to show that the recent upside should continue amid volatility.
Three years back, I had a hold position as despite the biotech’s DNA-based cancer diagnostics products becoming mainstream, this field involved heavy R&D expenses with competition faced from the likes of Invitae (OTCPK:OTC:NVTAQ). It was also richly valued at 12.14x to trailing sales.
It is now trading at about one-third of this ratio and has recently beaten analysts’ expectations during the recently released financial results for the second quarter of 2024 (“Q2”). Hence, this time around, I am bullish also based on the strength of its flagship Cologuard product.
Screening Product Strength
First, revenue of $699 million was reported during Q2, up 12.4% from the…
