We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Reasons to Hold on to Myriad Genetics (MYGN) Stock for Now
Read MoreHide Full Article
Myriad Genetics, Inc. (MYGN - Free Report) has been gaining from robust first-quarter 2022 results. Spectacular improvement in Pharmacogenomics testing revenues, along with growth in tumor profiling and GeneSight test volumes, looks encouraging. However, stiff competition and foreign exchange headwinds do not bode well for the stock.
Over the past year, the Zacks Rank #3 (Hold) stock has lost 26.6% compared with the 38.5% decline of the industry and a 7% fall in the S&P 500.
The renowned molecular diagnostic company has a market capitalization of $1.71 billion. The company’s earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters and missed the same in one, delivering an average surprise of 2.9%.
Riding on the company’s current business growth and bullish near-term prospects, this stock is worth holding on to for now.
Let’s delve deeper.
Factors At Play
Q1 Upsides: Myriad Genetics exited first-quarter 2022 with better-than-expected earnings and revenues. The massive improvement in Pharmacogenomics testing revenues, along with growth in tumor profiling and Prenatal testing, is encouraging. Diagnostic test volumes of 241,000 in the first quarter of 2022 increased 10% year over year, which is impressive. The new technological capabilities, together with product enhancements and product rollouts in the reported quarter, are expected to improve the company’s competitive position and accelerate growth.
Huge Potential in Oncology Testing: The company is striving toward cashing in on the huge potential in the breast cancer screening market.
In the first quarter of 2022, Myriad Genetics’ Oncology business generated $69.8 million in revenues. Reported test volumes were roughly 44,000. The company launched Precise Tumor for molecular tumor profiling as part of a suite of precise oncology solutions that combine its myRisk germline hereditary cancer test, myChoice companion diagnostic test and Myriad Genetics tumor profiling test powered by Illumina's TSO 500 technology.
Image Source: Zacks Investment Research
Product Volume Rebounds: Myriad Genetics continues to record strong testing volumes from new products.
Total test volumes in the first quarter of 2022 were 241,000, reflecting a year-over-year rise of 10% (excluding divested businesses). Sequentially, volume rose 2%.
Prenatal test volumes in Women's Health for the quarter increased 35% year over year. Tumor profiling test volumes in Oncology for the quarter increased 5% year over year and 23% sequentially. Pharmacogenomics test volumes in Mental Health for the quarter increased 66% year over year and were flat sequentially. GeneSight volumes increased 66% year over year to roughly 8,4000 tests processed in the quarter.
Downsides
Foreign Exchange Headwinds: Myriad Genetics receives a considerable portion of its revenues and pays a portion of its expenses in foreign currencies. As a result, the company remains at risk of exchange rate fluctuations between foreign currencies and the U.S. dollar.
Increasing Competition: With the entry of new players, imminent price competition is another cause of concern. Per management, Myriad Genetics is currently facing competition in its key BRACAnalysis market. The company expects competition to intensify in its current fields with the recently observed advancements in technology.
Estimate Trend
Over the past 60 days, the Zacks Consensus Estimate for Myriad Genetics’ earnings per share has moved 10% north to 11 cents.
The Zacks Consensus Estimate for 2022 revenues is pegged at $684.9 million, suggesting a 3.4% rise from the year-ago reported number.
Key Picks
A few better-ranked stocks in the broader medical space are UnitedHealth Group Incorporated (UNH - Free Report) , Medpace Holdings, Inc. (MEDP - Free Report) and Alkermes plc (ALKS - Free Report) .
UnitedHealth, having a Zacks Rank #2 (Buy), reported first-quarter 2022 earnings per share (EPS) of $5.49, which beat the Zacks Consensus Estimate by 1.7%. Revenues of $80.1 billion outpaced the consensus mark by 14.2%.
UnitedHealth has an estimated long-term growth rate of 14.8%. UNH’s earnings surpassed estimates in the trailing four quarters, the average surprise being 3.7%.
Medpace reported first-quarter 2022 adjusted EPS of $1.69, which surpassed the Zacks Consensus Estimate by 34.1%. Revenues of $330.9 million outpaced the Zacks Consensus Estimate by 1.1%. It currently has a Zacks Rank #2.
Medpace has a historical growth rate of 27.3%. MEDP’s earnings surpassed estimates in the trailing four quarters, the average surprise being 17.1%.
Alkermes reported first-quarter 2022 adjusted EPS of 12 cents, which surpassed the Zacks Consensus Estimate of a penny. Revenues of $278.6 million outpaced the Zacks Consensus Estimate by 6.2%. It currently sports a Zacks Rank #2.
Alkermes has an estimated long-term growth rate of 25.1%. ALKS’ earnings surpassed estimates in the trailing four quarters, the average surprise being 350.5%.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Reasons to Hold on to Myriad Genetics (MYGN) Stock for Now
Myriad Genetics, Inc. (MYGN - Free Report) has been gaining from robust first-quarter 2022 results. Spectacular improvement in Pharmacogenomics testing revenues, along with growth in tumor profiling and GeneSight test volumes, looks encouraging. However, stiff competition and foreign exchange headwinds do not bode well for the stock.
Over the past year, the Zacks Rank #3 (Hold) stock has lost 26.6% compared with the 38.5% decline of the industry and a 7% fall in the S&P 500.
The renowned molecular diagnostic company has a market capitalization of $1.71 billion. The company’s earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters and missed the same in one, delivering an average surprise of 2.9%.
Riding on the company’s current business growth and bullish near-term prospects, this stock is worth holding on to for now.
Let’s delve deeper.
Factors At Play
Q1 Upsides: Myriad Genetics exited first-quarter 2022 with better-than-expected earnings and revenues. The massive improvement in Pharmacogenomics testing revenues, along with growth in tumor profiling and Prenatal testing, is encouraging. Diagnostic test volumes of 241,000 in the first quarter of 2022 increased 10% year over year, which is impressive. The new technological capabilities, together with product enhancements and product rollouts in the reported quarter, are expected to improve the company’s competitive position and accelerate growth.
Huge Potential in Oncology Testing: The company is striving toward cashing in on the huge potential in the breast cancer screening market.
In the first quarter of 2022, Myriad Genetics’ Oncology business generated $69.8 million in revenues. Reported test volumes were roughly 44,000. The company launched Precise Tumor for molecular tumor profiling as part of a suite of precise oncology solutions that combine its myRisk germline hereditary cancer test, myChoice companion diagnostic test and Myriad Genetics tumor profiling test powered by Illumina's TSO 500 technology.
Product Volume Rebounds: Myriad Genetics continues to record strong testing volumes from new products.
Total test volumes in the first quarter of 2022 were 241,000, reflecting a year-over-year rise of 10% (excluding divested businesses). Sequentially, volume rose 2%.
Prenatal test volumes in Women's Health for the quarter increased 35% year over year. Tumor profiling test volumes in Oncology for the quarter increased 5% year over year and 23% sequentially. Pharmacogenomics test volumes in Mental Health for the quarter increased 66% year over year and were flat sequentially. GeneSight volumes increased 66% year over year to roughly 8,4000 tests processed in the quarter.
Downsides
Foreign Exchange Headwinds: Myriad Genetics receives a considerable portion of its revenues and pays a portion of its expenses in foreign currencies. As a result, the company remains at risk of exchange rate fluctuations between foreign currencies and the U.S. dollar.
Increasing Competition: With the entry of new players, imminent price competition is another cause of concern. Per management, Myriad Genetics is currently facing competition in its key BRACAnalysis market. The company expects competition to intensify in its current fields with the recently observed advancements in technology.
Estimate Trend
Over the past 60 days, the Zacks Consensus Estimate for Myriad Genetics’ earnings per share has moved 10% north to 11 cents.
The Zacks Consensus Estimate for 2022 revenues is pegged at $684.9 million, suggesting a 3.4% rise from the year-ago reported number.
Key Picks
A few better-ranked stocks in the broader medical space are UnitedHealth Group Incorporated (UNH - Free Report) , Medpace Holdings, Inc. (MEDP - Free Report) and Alkermes plc (ALKS - Free Report) .
UnitedHealth, having a Zacks Rank #2 (Buy), reported first-quarter 2022 earnings per share (EPS) of $5.49, which beat the Zacks Consensus Estimate by 1.7%. Revenues of $80.1 billion outpaced the consensus mark by 14.2%.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
UnitedHealth has an estimated long-term growth rate of 14.8%. UNH’s earnings surpassed estimates in the trailing four quarters, the average surprise being 3.7%.
Medpace reported first-quarter 2022 adjusted EPS of $1.69, which surpassed the Zacks Consensus Estimate by 34.1%. Revenues of $330.9 million outpaced the Zacks Consensus Estimate by 1.1%. It currently has a Zacks Rank #2.
Medpace has a historical growth rate of 27.3%. MEDP’s earnings surpassed estimates in the trailing four quarters, the average surprise being 17.1%.
Alkermes reported first-quarter 2022 adjusted EPS of 12 cents, which surpassed the Zacks Consensus Estimate of a penny. Revenues of $278.6 million outpaced the Zacks Consensus Estimate by 6.2%. It currently sports a Zacks Rank #2.
Alkermes has an estimated long-term growth rate of 25.1%. ALKS’ earnings surpassed estimates in the trailing four quarters, the average surprise being 350.5%.