Hidden Gem in Health Care: A Potential Buy According to Alger’s Amy Zhang

Little-known health-care stock could be worth buying, says Alger’s Amy Zhang

Unlocking Potential: Why GeneDx and Other Genetic Testing Companies are Worth Your Attention

At Extreme Investor Network, we believe in staying ahead of the curve—especially when it comes to identifying investment opportunities in transformative sectors like healthcare. Recently, Amy Zhang, Executive Vice President and Small-Cap Portfolio Manager at Alger, shared her insights on CNBC’s "Power Lunch" that could reshape your investment strategy. If you’re looking for high-growth opportunities, you might want to focus on genetic testing companies like GeneDx and Natera, alongside innovative firms like Glaukos.

GeneDx: A Rising Star in Genetic Testing

GeneDx has seen its shares skyrocket by an extraordinary 1,000% over the past year. But, according to Zhang, there’s still more room for growth. What makes GeneDx stand out in a crowded marketplace is their ability to deliver genetic testing services faster and more cost-effectively than their competitors—all while maintaining exceptional accuracy.

The Growth Potential

Zhang anticipates that GeneDx is addressing a critical need in healthcare, and the opportunities appear boundless. With a Total Addressable Market (TAM) projected to exceed $40 billion, their strategic focus on affordability and precision could lead to substantial revenue growth. As more than just a testing company, GeneDx is positioning itself as a pivotal player in healthcare innovation, a factor that savvy investors should not overlook.

Related:  Should You Buy, Sell, or Hold Realty Income in 2025?

Why This Matters for Investors:

  • Therapeutic Relevancy: As personalized medicine gains traction, companies focusing on genetic testing will play a central role in developing tailored therapies.
  • Consumer Demand: With increasing awareness and acceptance of genetic testing, demand is anticipated to soar.

Natera: Harnessing the Power of Genetic Insights

Similar to GeneDx, Natera offers exciting growth prospects in the genetic testing sector. Their flagship product, Signatera, provides cutting-edge cancer monitoring solutions—an area expected to bloom significantly in the coming years. Zhang estimates Natera’s TAM could reach up to $60 billion.

Track Record of Execution

Natera’s management has demonstrated exceptional skill in executing its strategic vision, which is essential for long-term success. Their growth trajectory indicates that even after a near 7% dip in the last month, the company has still seen a remarkable 66% increase over the past year.

Related:  While the Magnificent 7 stocks struggle, this overlooked growth stock is thriving

Investor Takeaway:

  • Market Resilience: Despite short-term fluctuations, companies like Natera that operate in essential health markets will likely show resilience and substantial long-term returns.

Glaukos: Innovating for Eye Health

The eye care sector is another promising field for investors, particularly with companies like Glaukos leading innovations. Recently, Glaukos introduced its iDose product—a sustained-release implant designed to manage intraocular pressure, a common issue that can lead to vision impairment.

Game-Changing Potential

Zhang suggests that the iDose product has "blockbuster potential," even if Glaukos shares have faced a 32% decline over the past three months. Its long-term gains of nearly 15% for the year indicate that investors should keep a close watch on how the company’s product launches evolve.

Key Considerations for Investors:

  • Innovative Solutions: As the global population ages, eye health solutions will likely gain importance, making innovation in this area an attractive investment.
  • Market Demand: With vision-related issues on the rise, early investments in companies like Glaukos can yield substantial future returns.
Related:  These Companies Are Gaining Momentum Ahead of Next Week's Quarterly Reports

Conclusion: Why Invest in Genetic Testing and Eye Health Innovations

The insights shared by Amy Zhang offer valuable perspectives for investors looking for high-growth areas in healthcare. GeneDx, Natera, and Glaukos exemplify companies at the forefront of innovation within their respective fields. As the healthcare landscape continues to evolve, now might be the opportune moment to diversify your investment portfolio into these potentially lucrative domains.

At Extreme Investor Network, we strive to guide you in making informed investment decisions, providing exclusive insights that help you succeed in the fast-paced world of investing. Stay tuned for more updates and analyses tailored to elevate your investment strategy!