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In this article, we discuss the 13 best genomics stocks to buy now. If you want to read about some more genomics stocks, go directly to 5 Best Genomics Stocks To Buy Now.
Before talking about the best genomics stocks, it is important to understand what the term actually means. Genomics is the branch of science that is concerned with the structure, function, evolution, and mapping of genomes. In genomics, various steps, such as sampling, sequencing, data analysis and interpretation procedures, are undertaken to decode, assemble, and analyze genomes. Through genomics, personalized medicines are created for identification, prevention, and treatment of complex diseases.
The genomics sector is one of the most rapidly growing spaces in the global economy. Latest research shows that the global genomics market size was valued at $24.3 billion in 2021 and is projected to hit over $98.7 billion by 2030, expanding at a compound annual growth rate of a scary 16.85% during the forecast period. The research indicates that the 2023-207 period is going to be key to this growth. Other estimates of the growth of the genomics sector place the annual growth rate even higher, at around 20%.
A major factor contributing to the growth of the genomics industry is the rise in the number of people who are being diagnosed with genetic as well as chronic diseases. Other factors influencing the growth of the market include advancement in diagnostic techniques, increasing investments by governments, a surge in cancer incidents, and rise in research and development initiatives. These investments are being made in sectors like synthetic biology, healthcare, gene sequencing of plants and organisms, and bioengineering.
Besides biotech giants like Pfizer Inc. (NYSE:PFE), Eli Lilly and Company (NYSE:LLY), and AbbVie Inc. (NYSE:ABBV), some of the most exciting startups in the genomics space include Guardant from the US, and Freenom, Allogene Therapeutics, and Oxford Nanopore Technologies from the UK. Emerging biotech companies and genetic-based startups are playing a huge role in the development of next-generation sequencing technologies.
Our Methodology
The companies that operate in the genomics sector were selected for the list. The analyst ratings of these firms and the latest updates related to them are also discussed to provide some additional context. Data from around 900 elite hedge funds tracked by Insider Monkey in the third quarter of 2022 was used to identify the number of hedge funds that hold stakes in each firm.
Photo by National Cancer Institute on Unsplash
Best Genomics Stocks To Buy Now
13. CareDx, Inc (NASDAQ:CDNA)
Number of Hedge Fund Holders: 15
CareDx, Inc (NASDAQ:CDNA) discovers, develops, and commercializes diagnostic solutions for transplant patients and caregivers worldwide. On November 3, Caredx posted earnings for the third quarter of 2022, reporting losses per share of $0.06, beating market estimates by $0.33. The revenue over the period was $79.4 million, up 5.0% compared to the revenue over the same period last year and missing market estimates by $3.22 million.
On November 7, Raymond James analyst Andrew Cooper maintained a Strong Buy rating on CareDx, Inc. (NASDAQ:CDNA) stock and lowered the price target to $26 from $35, noting that the company had too substantial a growth runway to ignore at these levels.
Among the hedge funds being tracked by Insider Monkey, St. Petersburg, Florida-based investment firm ARK Investment Management is a leading shareholder in CareDx, Inc (NASDAQ:CDNA) with 5.8 million shares worth more than $98.5 million.
Just like Pfizer Inc. (NYSE:PFE), Eli Lilly and Company (NYSE:LLY), and AbbVie Inc. (NYSE:ABBV), CareDx, Inc (NASDAQ:CDNA) is one of the top medical stocks to invest in according to hedge funds.
In its Q3 2022 investor letter, Baron Funds, an asset management firm, highlighted a few stocks and CareDx, Inc (NASDAQ:CDNA) was one of them. Here is what the fund said:
“We purchased additional shares of CareDx, Inc (NASDAQ:CDNA), a diagnostic company that facilitates organ donor matches pre-transplant and rejection monitoring post-transplant. Transplant rejection testing is recurring and can help ensure the right immunosuppressant treatment to avoid overdosage or organ loss. Shares underperformed for the quarter. The company is facing reimbursement headwinds as it moves beyond traditional Medicare and into the growing Medicare Advantage market and commercial payer markets for patients who do not qualify for Medicare. It is providing tests into these commercial markets basically for free to gain first mover advantage and on a delayed reimbursement basis because while Medicare Advantage payers are required to pay, they put up administrative hurdles that slow the process considerably. So even though test volume for CareDx was up 21% in the second quarter due to increased market penetration of the company’s cutting-edge DNA tests, the overall average selling price per test (ASP) was down 14%, leading to overall revenue growth of only 9%. This ASP headline has spooked the market, leading to trading multiple as low as we have ever seen. While we acknowledge this overhang may take time to navigate, we think the company’s competitive position within this diagnostic niche is not being sufficiently appreciated. CareDx has a first-mover advantage, has embedded its tests into large centers’ protocols, and offers intensive patient support. We also believe the randomized controlled trials the company is running can help add to the body of clinical evidence supporting its tests and will support its push for more reimbursement coverage. Kidney transplant monitoring is a $2 billion market into which CareDx is less than 15% penetrated, so we think there is plenty of runway for growth.”
12. Invitae Corporation (NYSE:NVTA)
Number of Hedge Fund Holders: 20
Invitae Corporation (NYSE:NVTA) is a medical genetics company that integrates genetic information into mainstream medicine to improve the healthcare of people in the United States, Canada, and internationally. On November 8, Invitae Corporation posted earnings for the third quarter of 2022, reporting losses per share of $1.27, missing market estimates by $0.43. The revenue over the period was $133.54 million, up 16.7% compared to the revenue over the same period last year and beating market estimates by $2.16 million.
Among the hedge funds being tracked by Insider Monkey, New York-based investment firm Deerfield Management is a leading shareholder in Invitae Corporation (NYSE:NVTA) with 206.9 million shares worth more than $162 million.
11. Pacific Biosciences of California, Inc. (NASDAQ:PACB)
Number of Hedge Fund Holders: 21
Pacific Biosciences of California, Inc. (NASDAQ:PACB) designs, develops and manufactures sequencing systems to resolve genetically complex problems. On October 26, Pacific Biosciences announced that it is launching a new more affordable gene-sequencing system called Revio. Revio will enable customers to scale the use of the company's HiFi sequencing technology.
On November 16, Canaccord analyst Kyle Mikson maintained a Buy rating on Pacific Biosciences of California, Inc. (NASDAQ:PACB) stock and raised the price target to $14 from $12, noting that the company recently highlighted its long-term strategy, including increasing its addressable market and penetration.
At the end of the third quarter of 2022, 21 hedge funds in the database of Insider Monkey held stakes worth $277 million in Pacific Biosciences of California, Inc. (NASDAQ:PACB), compared to 18 in the previous quarter worth $226.5 million.
In its Q2 2021 investor letter, DEVON Equity Management, an asset management firm, highlighted a few stocks and Pacific Biosciences of California, Inc. (NASDAQ:PACB) was one of them. Here is what the fund said:
“As a final word on Sequencing – we established a position in Pacific Biosciences of California, Inc. (NASDAQ:PACB) during the quarter. Pac Bio is the leader in Long Read Sequencing (Illumina are dominant in Short Read). The Long Read market is far less developed than the short read, but our continued research into the genomic sequencing field increased our confidence in the commercial viability for Long Read Sequencing in the coming years. We will discuss the investment case for Pac Bio in more detail in a future letter.”
10. PTC Therapeutics, Inc. (NASDAQ:PTCT)
Number of Hedge Fund Holders: 26
PTC Therapeutics, Inc. (NASDAQ:PTCT) is a biopharmaceutical company that focuses on the discovery, development, and commercialization of medicines for patients with rare disorders. On December 1, PTC Therapeutics unveiled that the Brazilian drug regulator had approved its licensed drug, Waylivra, for the treatment of a rare condition of fatty tissue. The Brazilian Health Regulatory Agency, ANVISA, approved Waylivra as the first treatment for familial party Lipodystrophy.
On September 12, investment advisory Jefferies initiated coverage of PTC Therapeutics, Inc. (NASDAQ:PTCT) stock with a Buy rating and a $62 price target. Analyst Kelly Shi issued the ratings update.
At the end of the third quarter of 2022, 26 hedge funds in the database of Insider Monkey held stakes worth $462 million in PTC Therapeutics, Inc. (NASDAQ:PTCT), compared to 22 in the preceding quarter worth $322.9 million.
9. Qiagen N.V. (NYSE:QGEN)
Number of Hedge Fund Holders: 28
Qiagen N.V. (NYSE:QGEN) offers a sample to insight solutions that transform biological materials into molecular insights worldwide. On October 10, media reports indicated that biotech giant Bio-Rad Laboratories was in talks with Qiagen N.V. for a merger deal that could be worth in excess of $10 billion.
On November 11, investment advisory Berenberg maintained a Buy rating on Qiagen N.V. (NYSE:QGEN) stock and raised the price target to EUR 54.60 from EUR 53.91. Analyst Scott Bardo issued the ratings update.
Among the hedge funds being tracked by Insider Monkey, Boston-based investment firm Arrowstreet Capital is a leading shareholder in Qiagen N.V. (NYSE:QGEN) with 3.5 million shares worth more than $145.4 million.
8. CRISPR Therapeutics AG (NASDAQ:CRSP)
Number of Hedge Fund Holders: 29
CRISPR Therapeutics AG (NASDAQ:CRSP) is a gene editing company that focuses on developing gene-based medicines for serious diseases using its proprietary Clustered Regularly Interspaced Short Palindromic Repeats (CRISPR)/CRISPR-associated protein 9 (Cas9) platform. On September 28, the US Food and Drug Administration granted regenerative medicine advanced therapy designation to CRISPR Therapeutics' CAR T cell therapy CTX130 to treat Mycosis Fungoides and Sézary Syndrome. In these diseases, a type of white blood cell called lymphocytes becomes malignant and affects the skin.
On November 23, Citi analyst Yigal Nochomovitz maintained a Neutral rating on CRISPR Therapeutics AG (NASDAQ:CRSP) stock and lowered the price target to $63 from $83, highlighting that the updated model factored in third-quarter results.
At the end of the third quarter of 2022, 29 hedge funds in the database of Insider Monkey held stakes worth $718.8 million in CRISPR Therapeutics AG (NASDAQ:CRSP), compared to 25 in the preceding quarter worth $724.98 million.
7. Blueprint Medicines Corporation (NASDAQ:BPMC)
Number of Hedge Fund Holders: 32
Blueprint Medicines Corporation (NASDAQ:BPMC) is a precision therapy company that develops medicines for genomically defined cancers and blood disorders in the United States and internationally. On November 1, Blueprint Medicines posted earnings for the third quarter of 2022, reporting losses per share of $2.23, beating market estimates by $0.28. The revenue over the period was $65.97 million, up 172.7% compared to the revenue over the same period last year and beating market estimates by $22.09 million.
On November 2, Jefferies analyst Eun Yang maintained a Buy rating on Blueprint Medicines Corporation (NASDAQ:BPMC) stock and lowered the price target to $80 from $84, noting that third quarter Ayvakit sales shortfall was expected, and the revised FY22 sales forecast signals its opportunity in ASM may be peaking.
At the end of the third quarter of 2022, 32 hedge funds in the database of Insider Monkey held stakes worth $595 million in Blueprint Medicines Corporation (NASDAQ:BPMC), compared to 26 in the previous quarter worth $458.3 million.
6. Natera, Inc. (NASDAQ:NTRA)
Number of Hedge Fund Holders: 45
Natera, Inc. (NASDAQ:NTRA) is a diagnostics company that develops and commercializes molecular testing services worldwide. On November 16, Natera unveiled that it has priced its underwritten public offering of 11.43 million shares of its common stock at a price to the public of $35.00 per share. Underwriters are granted a 30-day option to purchase up to an additional 1.71 million shares of its common stock.
On November 14, Credit Suisse analyst Dan Leonard maintained an Outperform rating on Natera, Inc. (NASDAQ:NTRA) stock and lowered the price target to $55 from $70, highlighting the company's growth opportunities in minimal residual disease testing across multiple indications as well as its continued leading position in reproductive health testing.
At the end of the third quarter of 2022, 45 hedge funds in the database of Insider Monkey held stakes worth $1.1 billion Natera, Inc. (NASDAQ:NTRA), compared to 39 in the preceding quarter worth $880.9 million.
In addition to Pfizer Inc. (NYSE:PFE), Eli Lilly and Company (NYSE:LLY), and AbbVie Inc. (NYSE:ABBV), CareDx, Inc (NASDAQ:CDNA) is one of the top medical stocks to invest in according to hedge funds.
In its Q3 2022 investor letter, Alger Capital, an asset management firm, highlighted a few stocks and Natera, Inc. (NASDAQ:NTRA) was one of them. Here is what the fund said:
“Natera, Inc. (NASDAQ:NTRA) is a speciality lab providing genetic testing services in the reproductive health, oncology and transplant markets. Non-invasive prenatal testing (NIPT), part of the company’s reproductive health franchise, has historically generated most of the corporate revenue. However, we believe Natera’s oncology business may represent a larger share of revenue in the future, as we are seeing customers adopt these tests due to positive insurance reimbursement decisions and favorable clinical trial results.
Natera’s third-quarter share price outperformance was primarily driven by better-than-expected second-quarter results. In addition, management announced positive business updates. The company continues to execute well on its growth initiatives and is capturing market share relative to its key competitors. moreover, Natera announced that it will join a national diagnostic laboratory’s preferred lab network. Which helped address alleged concerns over its billing practices that were publicized earlier this year in a short seller’s report.”
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Disclosure. None. 13 Best Genomics Stocks To Buy Now is originally published on Insider Monkey.
