The global pharmaceutical can generate more than $1.15 trillion by the end of 2024. Amidst this, any pharma company with strong fundamentals can take advantage.
-
Exact Sciences (NASDAQ: EXAS) showcased an impressive 2023 with a 4% revenue increase to $2.5 billion.
-
The company’s portfolio outside Cologuard has strong growth potential.
-
Despite a 4% stock decline since last year, Exact Sciences remains undervalued, offering significant upside potential.
Saqib Iqbal, a financial analyst at Trading.Biz, found one such stock currently selling at a discount. The stock he is referring to is Exact Sciences (NASDAQ: EXAS).
He says, “In 2023, Exact Sciences (NASDAQ:EXAS) achieved remarkable milestones like testing 4.1 million patients and experiencing a 24% jump in core revenue, reaching $2.5 billion. Particularly, there’s a positive shift to free cash flow.
For the next quarter, the company anticipates a substantial boost in annualized sales for the Precision Oncology segment, projected to soar from $640 million to $1 billion. Despite these strong fundamentals, the company’s stock is down by 4% since last year. However, according to the stock’s fair value, it can gain 30% in the coming months.”
If we talk about Exact Sciences Corp., is a Wisconsin-based molecular diagnostics firm that focuses on detecting early-stage cancers.
It is well-known for its cancer detection methods, notably its colorectal screening test, Cologuard. However, its portfolio outside of Cologuard continues to be undervalued, and it has the potential to account for a considerably bigger amount of future revenues.
In the previous quarter, the business saw sales grow to $647 million, up 17%, led by strong use of Cologuard and worldwide expansion, notably Oncotype DX.
Looking ahead, predictions for 2024 show a 13% rise in core revenue to $2.81-2.85 billion, driven by growth in both the screening and Precision Oncology divisions.
With these valuations and the stock trading at a discount, no wonder why Saqib thinks, the stock has significant upside potential.
EXAS Technical Analysis: Good Opportunity to Buy the Dip
Since the start of the year, EXAS is down by more than 13%. However, the stock is looking to change the trend. On the daily chart, the stock is below the 200-day SMA and recently created a support level on March 6.
The next resistance for the stock is at 69.26. If the price breaks through this level, it can reach 77.42, achieved on December 27. If we see a further rise, the next level is at 85.71, an increase of 34% from the current levels.
