NeoGenomics Inc (NEO, Financial), a prominent player in the Medical Diagnostics & Research industry, has recently witnessed a significant uptick in its stock performance. Over the past week, the company's stock price has surged by 14.60%, and over the last three months, it has gained an impressive 22.92%. Currently, the stock is priced at $17.04, with a market capitalization of $2.18 billion. According to GuruFocus, the GF Value of NeoGenomics stands at $17.53, suggesting that the stock is Fairly Valued. This is a shift from three months ago when it was considered Modestly Undervalued.
Introduction to NeoGenomics Inc
NeoGenomics Inc operates a network of cancer-focused genetic testing laboratories primarily in the United States, along with a facility in Switzerland. The company is divided into two segments: Clinical Services and Advanced Diagnostics. NeoGenomics offers a variety of genetic and molecular testing services, including Cytogenetics, Fluorescence In-Situ Hybridization, Flow cytometry, Immunohistochemistry, Molecular testing, and Pathology consultation. The Advanced Diagnostics segment aids pharmaceutical companies in drug development by supporting clinical trials and research. The majority of NeoGenomics' revenue is derived from its Clinical Services, which are provided based on online test orders or written test requisition forms.
Assessing Profitability
NeoGenomics' financial health, as indicated by its Profitability Rank, is currently at 4/10. The company's Operating Margin stands at -15.46%, which is better than 44.86% of its peers in the industry. Its Return on Equity (ROE) is -8.88%, surpassing 45.45% of competitors, while the Return on Assets (ROA) at -5.01% is better than 51.1% of industry counterparts. The Return on Invested Capital (ROIC) is -7.06%, which is also better than 48.23% of the companies in the same sector. Despite these challenging figures, NeoGenomics has managed to maintain profitability for four out of the past ten years, outperforming 35.29% of its peers.
Growth Trajectory
NeoGenomics has demonstrated consistent growth, as reflected in its Growth Rank of 7/10. The company's 3-Year Revenue Growth Rate per Share is 5.80%, which is better than 48.21% of the companies in the industry. Over a five-year period, the Revenue Growth Rate per Share has been 7.00%, surpassing 43.45% of its peers. Looking ahead, the Total Revenue Growth Rate (Future 3Y To 5Y Est) is projected at 10.10%, which is more favorable than 53.03% of the industry. This indicates a strong potential for continued expansion in the coming years.
Notable Shareholders
NeoGenomics has attracted the attention of several prominent investors. Steven Cohen (Trades, Portfolio) is the leading shareholder with 2,197,551 shares, representing 1.72% of the company. Following him is Chuck Royce (Trades, Portfolio), holding 574,897 shares or 0.45%, and Jim Simons with 141,600 shares, accounting for 0.11% of the shares.
Competitive Landscape
NeoGenomics competes with several key players in the Medical Diagnostics & Research industry. Veracyte Inc (VCYT, Financial) with a market cap of $1.79 billion, Myriad Genetics Inc (MYGN, Financial) valued at $2.51 billion, and OPKO Health Inc (OPK, Financial) with a market cap of $1 billion are among its closest competitors. Each of these companies holds a significant position within the same industry, providing stiff competition for NeoGenomics.
Conclusion
In conclusion, NeoGenomics Inc has shown a robust performance in terms of stock price growth and is maintaining a competitive stance in the Medical Diagnostics & Research industry despite some financial challenges. The company's commitment to innovation and expansion in genetic testing services, along with its strategic focus on both clinical and pharmaceutical services, positions it well for future growth. As the industry continues to evolve, NeoGenomics' ability to adapt and innovate will be crucial in maintaining its market position and financial health.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
