I’m bullish on the long-term trajectory of personalized medicine stocks. These companies specialize in tailoring a holistic approach to healthcare, with medical treatments tailored to the individual characteristics of each patient. The main benefit of this approach is that treatments can be more effective as well as less risky, with reduced chances of adverse side effects from treatment.
Personalized medicine stocks leverage a variety of technologies and therapies that I expect will become more prominent over time. Specifically, they use genetic or other biomarker information in conjunction with DNA sequencing and bioinformatics. The use of these technologies moves healthcare away from a one-size-fits-all approach to one that’s unique to each individual.
These personalized medicine stocks that are leading the way forward can help significantly reduce healthcare costs and risks to patients. Here are three of the best companies you should consider adding to your portfolio to take advantage of their progress.
Illumina (ILMN)
Illumina (NASDAQ:ILMN) is a leader in genomics, which is an integral part of personalized medicine. In simple terms, it enables doctors and researchers to study the genetic variations and functions of genes and patients.
Now might be a good time for investors to consider adding ILMN to their portfolios. It has recently launched a product called NovaSeq X, a genomics sequencing instrument. It also instated a new CEO who has unveiled a new strategic direction for the company.
Amid these developments, Wall Street has rated ILMN stock a “Buy” and has given its share a 27.24% upside, which is expected to be reached within the next twelve months.
Exact Sciences (EXAS)
Exact Sciences (NASDAQ:EXAS) is known for its non-invasive screening test for colorectal cancer, Cologuard. Additionally, it’s also branching out into other diagnostic areas for the early detection of other types of cancers as well.
EXAS stock is a major holding by celebrity influencer and investor Cathie Wood and can be found in the ARK Innovation ETF (NYSEARCA:ARKK), accounting for 1.95% of its total holdings.
There has been some good news for EXAS stock as well, which could keep investors interested in holding it for the long term. Specifically, in the September quarter, EXAS stock’s sales in its screening division surged by 31% to $472 million, beating analysts’ expectations. The company also posted no earnings but reported $628.3 million in sales.
With results like these, it’s easy to understand why it’s one of those personalized medicine stocks to consider.
Guardant Health (GH)
Guardant Health (NASDAQ:GH) is a leader in the field of oncology-focused precision diagnostics. The company’s liquid biopsies can detect cancer early from blood samples and can also help healthcare providers form personalized treatment plans for their patients.
Wall Street expressed strong optimism for GH stock last year. Specifically, investment bank Bernstein initiated coverage of Guardant with an “outperform” rating and a $34 price target, citing the company’s high and growing levels of recurring revenue and high-profit margins.
Other analysts are also bullish on the company. Although its EPS is expected to remain negative for the next several years as a young startup, its top line is also expected to grow by 20.78% in FY2024 to $690.6 million.
Breakeven profitability on a GAAP EPS basis is expected sometime in 2028. Thingcould turn around sooner than expected, especially since it currently has a high gross margin of over 60%. This indicates it could be a highly profitable business if it maintains its efficiency.
On the date of publication, Matthew Farley did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
