Myriad Genetics, Inc. (MYGN Quick QuoteMYGN - Free Report) is well-poised for growth, backed by robust testing volumes and a huge potential in oncology testing. However, forex remains a concern.

Shares of this Zacks Rank #3 (Hold) stock have lost 39.3% compared with the industry’s decline of 40.3% on a year-to-date basis. The S&P 500 Index has fallen 9.3% in the same time frame.

MYGN — with a market capitalization of $1.52 billion — is a renowned molecular diagnostic company. The company’s earnings yield of 0.6% compares favorably with the industry’s (32.1%). It beat earnings estimates in two of the trailing four quarters, missed once and matched in the remaining quarter, the average surprise being 2.9%.

What’s Driving the Performance?

Myriad Genetics is committed to capitalizing on the huge potential in the breast cancer screening market.

In the first quarter of 2022, Myriad Genetics’ Oncology business generated revenues of $69.8 million. 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.

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Apart from this, the company 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, volumes rose 2%.

Prenatal test volumes in Women's Health for the quarter surged 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 climbed 66% year over year to roughly 8,4000 tests processed in the quarter.

What’s Weighing on the Stock?

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.

Estimates Trend

For 2022, the Zacks Consensus Estimate for revenues is pegged at $685.3 million, indicating an improvement of 9.2% from the year-ago period’s reported figure, while adjusted earnings per share stands at 11 cents, suggesting a whopping growth of 450% from the year-ago quarter.

Stocks to Consider

Some better-ranked stocks in the broader medical space are AMN Healthcare Services, Inc. (AMN Quick QuoteAMN - Free Report) , Masimo Corporation (MASI Quick QuoteMASI - Free Report) and ShockWave Medical, Inc. .

AMN Healthcare surpassed earnings estimates in each of the trailing four quarters, the average surprise being 15.6%. The company currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

AMN Healthcare’s long-term earnings growth rate is estimated at 1.1%. The company’s earnings yield of 11.4% compares favorably with the industry’s (0.8%).

Masimo beat earnings estimates in each of the trailing four quarters, the average surprise being 4.4%. The company currently carries a Zacks Rank #2 (Buy).

Masimo’s estimated earnings growth rate for second-quarter 2022 is pegged at 22.3%. The company’s earnings yield is 3.8% against the industry’s (8.5%).

ShockWave Medical surpassed earnings estimates in each of the trailing four quarters, the average surprise being 189.9%. The company currently flaunts a Zacks Rank #1.

ShockWave Medical’s earnings growth rate for 2022 is estimated at 807.7%. The company’s earnings yield of 0.9% compares favorably with the industry’s (8%).