Should You Retain Exact Sciences Stock in Your Portfolio Now?

Exact Sciences Corporation’s EXAS investment in high-return pipeline opportunities with significant patient impacts should drive growth in the upcoming quarter. Additionally, the company is advancing digital infrastructure and diagnostics to deliver comprehensive insights at every stage of cancer care. Meanwhile, mounting costs from macroeconomic pressures and fierce competitive pressure raise concerns.In the past year, this Zacks Rank #3 (Hold) company’s shares have lost 35% compared with 12.3% decline of the industry and 10.5% gain of the S&P 500 composite. The globally renowned medical device company boasts a market capitalization of $8.48 billion. It has a long-term earnings growth rate of 29.4% compared with the industry’s 21.5%. Additionally, the company’s earnings surpassed estimates in two of the trailing four quarters, met once and missed in the other, delivering an average surprise of 37.98%.Key Drivers for EXAS StockAdvancing New Solutions: Building on the success of the Cologuard and Oncotype DX tests, Exact Sciences continues to invest in its pipeline to develop innovative solutions for every stage of cancer diagnosis. In 2024, the company advanced its most impactful programs — colon cancer screening, molecular residual disease testing and multi-cancer screening. Additionally, Exact Sciences bolstered its patent portfolio by signing an exclusive license to TwinStrand's cell-free nucleic acid sequencing technology. The company has secured the FDA’s approval for Cologuard Plus, a next-generation colon cancer screening test, with plans to launch it in the second quarter of 2025, accompanied by Medicare coverage and guideline inclusion. In the coming months, Exact Sciences plans to introduce several novel tests that will revolutionize the way cancer is identified, tracked, and managed, while also contributing to its rapid expansion. In the rapidly growing MRD space, the company completed two studies for Oncodetect in 2024. The tests are soon to be launched as laboratory-developed tests (LDT) with Medicare reimbursement through the Molecular Diagnostic Services Program (MolDX). Exact Sciences is also making headway with its blood-based colon cancer screening test, with top-line results from the pivotal BLUE-C study expected by mid-2025. Enhancing Customer Experience: Exact Sciences aims to transform cancer care by providing patients with valuable insights at every stage of their diagnosis and treatment. The company is currently working to build the best digital infrastructure and diagnostics. The combined strength of Exact Nexus, the company’s proprietary technology platform, and EXAS’ commercial capabilities is leading to more patients completing Cologuard every three years. This supports the company’s goal of making screening a routine practice and closing the screening gap. Image Source: Zacks Investment ResearchFactors Weighing on EXAS StockEscalating Costs: Exact Sciences’ business has been affected by global macroeconomic conditions. Headwinds, including geopolitical conflicts, a high-interest-rate environment and limited access to capital markets, are creating significant pressure on the company’s profitability. In the fourth quarter of 2024, cost of revenues rose 14.4% year over year. Sales and marketing expenses surged 12.9%. EXAS is facing mounting cost pressures due to increasing production costs, personnel expenses, and facility and support services.Tough Competitive Landscape: Given the large market for colorectal cancer screening, Exact Sciences faces numerous competitors, some of which possess significantly greater financial and other resources and development capabilities than the company. Under such intense market pressures, EXAS may struggle with growth and profitability if it is unable to compete effectively.EXAS Stock Estimate TrendIn the past 30 days, the Zacks Consensus Estimate for Exact Sciences’ 2025 loss per share has declined 1.7% to 59 cents. The Zacks Consensus Estimate for 2025 revenues suggests a 10.7% year-over-year improvement.Key PicksSome better-ranked stocks in the broader medical space are Phibro Animal Health PAHC, Boston Scientific BSX and Cardinal Health CAH.Phibro Animal Health has an estimated fiscal 2025 earnings growth rate of 62.2% compared with the industry’s 17.2%. Its earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 27.06%. The company’s shares have surged 73.5% compared with the industry’s 9.5% growth in the past year.PAHC sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.Boston Scientific, carrying a Zacks Rank #2 (Buy) at present, has an earnings yield of 2.7% compared with the industry’s 1.5%. Shares of the company have rallied 47.1% compared with the industry’s 9.5% growth. BSX’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 8.25%.Cardinal Health, carrying a Zacks Rank #2 at present, has an estimated long-term earnings growth rate of 10.7% compared with the industry’s 9.5%. Shares of the company have rallied 17.5% against the industry’s 3.2% decline. CAH’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 9.64%.Only $1 to See All Zacks' Buys and SellsWe're not kidding.Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators,and more, that closed 256 positions with double- and triple-digit gains in 2024 alone.See Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Boston Scientific Corporation (BSX): Free Stock Analysis Report Cardinal Health, Inc. (CAH): Free Stock Analysis Report Phibro Animal Health Corporation (PAHC): Free Stock Analysis Report Exact Sciences Corporation (EXAS): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks