Why Exact Sciences Stock Roared Higher This Week
Shares of Exact Sciences (NASDAQ: EXAS) stormed higher by 16.5% over the first three and a half days of trading this week, according to data provided by S&P Global Market Intelligence. The big gain came after the biotech posted better-than-expected first-quarter earnings on Tuesday, May 9.
Highlights from the report included a 24% rise in quarterly revenue to $602 million (relative to the same period a year ago), driven by an uptick in sales for its flagship cancer diagnostic, Cologuard; a net loss that shrank by an impressive 58% on a year-over-year basis; and a strong cash position that totaled $421.4 million at the end of the period. The cancer diagnostic specialist also raised its 2023 full-year revenue guidance by a noteworthy $110 million at the midpoint.
After posting these impressive Q1 results, Exact Sciences quickly won a series of price target upgrades from various Wall Street analysts. The bulk of analysts covering the stock now view it as moderately undervalued at current levels. Underscoring this point, Wall Street's consensus 12-month price target on Exact's shares implies upside potential of approximately 8%. Exact's stock has already risen by a staggering 57% so far this year.
Source Fool.com
