Why Investors Are Paying a Premium for EXACT Sciences Corporation
EXACT Sciences Corporation (NASDAQ: EXAS) operates in an industry famous for cutthroat competition that strangles profitability. In this context, the stock's 300% run-up to a nosebleed-inducing valuation this year seems ludicrous.
To see why investors are willing to pay an immense premium for a diagnostics stock, let's begin with the enormous potential for its Cologuard brand.
Over the past several quarters, Exact Sciences has thrilled investors by surpassing its own lofty sales growth targets. During the three months ended September, the company completed 136% more Cologuard tests than in the same period last year.
Source: Fool.com
Exact Sciences Stock
€42.14
-2.590%
Exact Sciences is currently one of the favorites of our community with 15 Buy predictions and no Sell predictions.
As a result the target price of 77 € shows a very positive potential of 82.75% compared to the current price of 42.14 € for Exact Sciences.
