Is GeneDx Holdings (USA Stocks:WGS) undervalued?

In the world of investing, health is wealth. GeneDx Holdings Corp (USA Stocks: WGS), a key player in the Healthcare sector, specifically in Health Care Equipment & Services, is presenting new investment opportunities. Despite a net income loss of $175.8M and a profit margin of -0.61, the company has shown promising signs of growth. With a quarterly revenue growth of 44.7%, the company is on an upward trajectory. The company's market capitalization stands at $514.1M, indicating a solid presence in the market. The EPS estimate for the current quarter is -$0.67, but the highest estimated target price from analysts is $10.97, suggesting potential for significant upside. The company's rate of daily change is 0.99, and the accumulation distribution figure is 0.0654, both of which indicate a healthy trading environment. Despite the challenges, GeneDx Holdings Corp is setting the stage for new investment opportunities in the Health Information Services industry. Currently, GeneDx Holdings' Research and Development to Revenue ratio remains relatively stable compared to the previous year. The Current Ratio is projected to increase to 3.22 in 2024, while the Price to Sales Ratio is expected to decrease to 0.31 in the same year. This article will examine GeneDx Holdings, discussing why this could be a promising year for its shareholders. Additionally, we will explore key factors influencing GeneDx Holdings' products and their potential impact on the company's outlook for active traders this year.
Published over six months ago
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Reviewed by Gabriel Shpitalnik

GeneDx Holdings Corp has a performance score of 23 out of 100. The company's Market Volatility (Beta) is -0.49, suggesting potential diversification benefits for a portfolio. As market returns increase, GeneDx Holdings' returns are expected to decrease at a slower rate. In a bear market, GeneDx Holdings is likely to outperform. Consider GeneDx Holdings Corp's potential upside and the relationship between the accumulation distribution and price action indicator when analyzing future returns.

Main Points

GeneDx Holdings Corp (USA Stocks: WGS) is a promising investment opportunity, particularly from a product perspective. Despite reporting a gross profit loss of 26.8M, the company has managed to maintain a substantial revenue per share of 8.595. This indicates that GeneDx's products are still generating significant income, which is a positive sign for potential investors. Additionally, the company's total risk alpha of 2.72 suggests that the stock has a good risk-reward balance, making it an attractive option for those looking to diversify their portfolio in the Health Information Services industry.
The performance of GeneDx Holdings Corp in the marketplace will significantly impact your decision to invest in its stock. Revenue growth, profitability, competitive positioning, management quality, and industry trends can influence GeneDx Holdings' stock prices. When investing in GeneDx Holdings, there are several factors to consider and potential outcomes to expect. As a company performs well, its stock price may increase, allowing investors to benefit from price appreciation. However, GeneDx Stock can experience significant price fluctuations due to market conditions, economic factors, industry trends, or company-specific news. This is why investing in stocks such as GeneDx Holdings carries risks, including the potential for capital loss. Stock prices can decline, and investors may incur losses if they sell shares at a lower price than their initial investment.

How does GeneDx utilize its cash?

At this time, GeneDx Holdings' Total Cashflows From Investing Activities is comparatively stable compared to the past year. . To perform a cash flow analysis of GeneDx Holdings, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash GeneDx Holdings is receiving and how much cash it distributes out in a given period. The GeneDx Holdings cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.

GeneDx Holdings Gross Profit

GeneDx Holdings Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing GeneDx Holdings previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show GeneDx Holdings Gross Profit growth over the last 10 years. Please check GeneDx Holdings' gross profit and other fundamental indicators for more details.

What is driving GeneDx Holdings Investor Appetite?

The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. GeneDx Holdings has an asset utilization ratio of 42.76 percent. This implies that the Company is making USD0.43 for each dollar of assets. An increasing asset utilization means that GeneDx Holdings Corp is more efficient with each dollar of assets it utilizes for everyday operations.
 2021 2022 2023 2024 (projected)
Payables Turnover5.125.6813.8614.56
Days Of Inventory On Hand53.3719.0822.5740.43
"Buy low, sell high" is a well-known investment adage that seems particularly relevant to GeneDx Holdings Corp (USA Stocks: WGS). Despite a challenging year with a net income loss of $175.8M and a negative operating margin of 22%, the company's quarterly revenue growth of 44.7% suggests a potential turnaround. With a market capitalization of $514.13M and shares largely owned by institutions (48.51%) and insiders (29.97%), this health information services company is showing signs of resilience. However, the high probability of bankruptcy at 96% warrants caution. Nevertheless, with a target price of $15.25 and a current typical day price of $19.82, GeneDx presents an intriguing investment opportunity for those with a high-risk tolerance..

GeneDx Holdings has a small chance to finish above $19.91 in 2 months

GeneDx Holdings Corp's latest Sortino ratio, a risk-adjusted return measure, is at 0.45. This low ratio suggests that the company's returns aren't adequately offsetting its investment risk. Consequently, the likelihood of GeneDx's stock price exceeding $19.91 in the next two months seems limited. Investors should consider this risk profile when making decisions. GeneDx is showing above-average volatility, which can directly affect its stock price, particularly in bear markets. This increased volatility can cause investor stress as share values drop, often prompting portfolio rebalancing.
Understanding market volatility trends can help investors time their market moves and use volatility indicators to measure GeneDx's stock risk during both bullish and bearish trends.In conclusion, GeneDx Holdings Corp (USA Stocks:WGS) presents a compelling investment opportunity. The analyst overall consensus is a 'Buy', with 2 strong buy recommendations. The estimated target price ranges from a low of $8.99 to a high of $10.97, with an average estimated value of $9.88, indicating a potential upside from the current market valuation of $19.52. However, investors should be aware of the company's negative EPS estimates for both the current and next fiscal year, ending in December, which stand at -1.45 and -0.6 respectively. Despite the hype value of $25.15, the real value is estimated at $12.24, suggesting that the stock may be overvalued. Therefore, while the stock has potential, investors should exercise caution and conduct further research before making a decision..

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Editorial Staff

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