Exact Sciences (EXAS): Assessing Valuation After a 50% One-Month and 90% Three-Month Share Price Surge
Exact Sciences (EXAS) has quietly climbed over 50% in the past month and nearly 90% in the past 3 months, putting the stock back on many growth oriented healthcare investors radars.
See our latest analysis for Exact Sciences.
Zooming out, that surge sits on top of a strong year to date, with Exact Sciences delivering robust double digit share price returns recently, while longer term total shareholder returns still reflect the earlier, more volatile chapter of its growth story.
Given that momentum in innovative diagnostics, it is worth seeing what else is happening across healthcare, and our healthcare stocks is a useful place to scout the next ideas.
With shares now near analyst targets but still trading below some intrinsic value estimates, the key question is whether Exact Sciences remains mispriced after its run, or if the market is already baking in the next leg of growth.
Most Popular Narrative Narrative: 2.5% Undervalued
With Exact Sciences last closing at $101.06 against a narrative fair value of $103.67, the story hinges on how far future earnings can stretch this premium.
Multi-year operational cost optimization initiatives (targeting $150M in annual savings by 2026 via automation, AI-driven lab/process efficiencies, and reduced G&A spend) are establishing a foundation for expanding EBITDA and net margins over time, especially as scale effects take hold.
Curious how modest top line growth assumptions still lead to a sharp swing from deep losses to healthy profitability and a rich future earnings multiple? The narrative leans on an aggressive margin makeover and a premium valuation normally reserved for market darlings. Want to see how these moving parts add up to that fair value call?
Result: Fair Value of $103.67 (UNDERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, the narrative could unravel if Cologuard’s dominance erodes amid tougher stool and blood based competition, or if pricey R&D fails to deliver.
Find out about the key risks to this Exact Sciences narrative.
Build Your Own Exact Sciences Narrative
If you see the story differently, or want to dig into the numbers yourself, you can build a personalized view in just minutes: Do it your way.
A good starting point is our analysis highlighting 3 key rewards investors are optimistic about regarding Exact Sciences.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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