The rising risks towards human health are pushing the research and innovations in the genomic market, opening multi-faceted opportunities for the market. Also, the rapid adoption of technological advancements is increasingly accelerating its potential to cater to patients.
Against this backdrop, it could be wise to invest in fundamentally strong genomic research stocks Agilent Technologies, Inc. (A), Illumina, Inc. (ILMN), and 10x Genomics, Inc. (TXG) with significant growth potential.
Genomics is revolutionizing modern healthcare and emerging as one of the most helpful technologies in today’s world. Genomics has shown its ability to prevent, manage, and treat diseases, causing a major shift from conventional treatment methods to precision medicine in the healthcare sector.
Owing to factors like the growing incidence of cancer, growing research and development on genomics, supporting government initiatives, and the declining cost of sequencing, the demand for genomic research companies is on the rise. Also, increased demand for personalized medicine and tailored patient care and plans are navigating the market.
Fortune Business Insights forecast the global genomics market to grow from $30.75 billion in 2024 to $80.17 billion by 2032, exhibiting growth at a CAGR of 12.7%. Essential factors contributing to the market growth include rising genomics applications, growing government support, and implementation of artificial intelligence (AI).
Given the industry’s robust outlook, investing in fundamentally strong genomic research stocks A, ILMN, and TXG could be wise.
Let’s discuss the fundamentals of these stocks in detail:
Agilent Technologies, Inc. (A)
A provides application-focused solutions to the life sciences, diagnostics, and applied chemical markets globally. The company operates through three segments: Life Sciences and Applied Markets; Diagnostics and Genomics; and Agilent CrossLab.
On November 14, Agilent announced the innovative Mito-rOCR Assay Kit. Mito-rOCR is an easy and streamlined end-to-end solution that makes sophisticated analysis of mitochondrial function available to researchers of all skill levels with accuracy and ease.
This cost-effective and versatile kit allows researchers to easily incorporate functional assessment of relative mitochondrial respiration into their cell physiology and disease pathology studies.
Also, on October 21, A unveiled its next-generation Agilent InfinityLab LC Series portfolio, consisting of 1290 Infinity III LC, 1260 Infinity III Prime LC, and 1260 Infinity III LC systems, all including the biocompatible versions. These are the first HPLC systems featuring the new Agilent InfinityLab Assist Technology, providing enhanced, built-in system assistance capabilities.
This technology elevates lab efficiency with enhanced automation, connectivity, and sustainability capabilities and allows labs to focus more on achieving results rather than on daily operation and maintenance tasks.
During the fourth quarter that ended October 31, 2024, A’s net revenue increased 0.8% year-over-year to $1.70 billion, and its income from operations was $408 million. The company’s non-GAAP net income and non-GAAP EPS came in at $418 million and $1.46, up 3.5% and 5.8% from the prior-year quarter, respectively.
Additionally, as of October 31, 2024, the company’s total assets stood at $11.85 billion compared to $10.76 billion as of October 31, 2023.
According to the company’s fiscal first-quarter 2025 outlook, A expects revenue in the range of $1.65 billion to $1.68 billion. Non-GAAP earnings per share are expected to range from $1.25 to $1.28.
Also, for the full year, the company expects revenue between $6.79 billion and $6.87 billion, representing a range of up 4.3% to 5.5% on a reported basis. Also, its non-GAAP earnings are expected to be $5.54 to $5.61 per share.
Analysts expect A’s revenue and EPS for the second quarter (ending April 2025) to increase 5.1% and 7% year-over-year to $1.65 billion and $1.31, respectively. Moreover, the company topped the consensus EPS estimates in all four trailing quarters.
Shares of A have surged 5.2% over the past month and 10.5% over the past year to close the last trading session at $138.14.
A’s solid fundamentals are reflected in its POWR Ratings. The POWR Ratings are calculated by considering 118 different factors, each weighted to an optimal degree.
A has a B grade for Quality. It is ranked #8 out of 41 stocks in the Medical – Diagnostics/Research industry.
In addition to the POWR Ratings we’ve stated above, we also have A’s ratings for Growth, Sentiment, Value, Momentum, and Stability. Get all ratings here.
Illumina, Inc. (ILMN)
ILMN offers sequencing- and array-based solutions for genetic and genomic analysis internationally. It operates through Core Illumina and GRAIL segments. The company offers sequencing and array-based instruments and consumables, whole-genome sequencing kits, and targeted resequencing kits.
On November 19, ILMN announced that it will release TruSight™ Oncology 500 v2 (TSO 500 v2) in mid-2025. It is a new version of the company's flagship cancer research assay that enables comprehensive genomic profiling (CGP). The latest solution will enable comprehensive genomic profiling of tumors.
The TSO 500 v2 launch will expand ILMN’s TruSight Oncology portfolio with its capability to assess hundreds of genes across all variant classes and immuno-oncology biomarkers in a single assay from one sample to facilitate therapy selection research.
On October 24, ILMN released its MiSeq™ i100 Series of sequencing systems, offering unparalleled benchtop speed and simplicity to advance next-generation sequencing (NGS) for labs.
During the third quarter that ended September 30, 2024, ILMN reported revenue of $1.08 billion, and its operating profit grew 182.8% from the year-ago value to $741 million. The company's non-GAAP gross profit was $761 million, up 4% from the prior year’s quarter.
Furthermore, ILMN’s non-GAAP net income and EPS came in at $181 million and $1.14, indicating increases of 248.1% and 245.5% year-over-year, respectively.
For the fourth quarter of 2024, the company raised its guidance for Core Illumina's non-GAAP operating margin to a range of 21% to 21.5%. It expects Core Illumina revenue of $1.07 billion.
For fiscal year 2024, the company’s Core Illumina non-GAAP EPS is expected to range from $4.05 to $4.15.
Street expects ILMN’s revenue for the first quarter (ending March 2025) to increase marginally year-over-year to $1.08 billion, while its EPS is expected to grow 1015.7% year-over-year to $1, respectively. Furthermore, the company surpassed the consensus revenue estimates in all of the trailing four quarters.
ILMN’s stock has gained 37.5% over the past six months and 52.5% over the past year to close the last trading session at $144.36.
ILMN’s bright prospects are reflected in its POWR Ratings. The stock has an overall rating of B, equating to a Buy in our proprietary rating system.
The stock has an A grade for Growth. It also has a B grade for Quality. ILMN is ranked #21 among 334 stocks in the Biotech industry.
Click here to access ILMN’s ratings for Momentum, Value, Stability, and Sentiment.
10x Genomics, Inc. (TXG)
TXG is a life science technology company that develops and sells instruments, consumables, and software for analyzing biological systems internationally. The company offers chromium, chromium connect, and chromium controller instruments, microfluidic chips, slides, reagents, and other consumables products.
On October 31, TXG and Cure51, a French TechBio startup, announced that Cure51 will deploy 10x Genomics' Visium HD for its pioneering work to analyze the unique biology of exceptional cancer survivors, whose survival mechanisms could hold the key to new therapeutic approaches.
On October 15, TXG launched two new Chromium products intended to democratize access to single-cell analysis. The company's new offerings, GEM-X Flex and GEM-X Universal Multiplex, introduce significant improvements in performance, workflow, and cost-effectiveness, enabling more researchers to pursue single-cell analysis for more applications.
During the third quarter that ended September 30, 2024, TXG’s total consumables revenue increased 10.3% year-over-year to $126.20 million, and its total revenue came in at $151.65 million. The company’s gross profit was $106.39 million for the quarter, up 11.4% from the prior year’s quarter.
In addition, the company’s cash and cash equivalents were $398.16 million as of September 30, 2024, compared to $359.28 million as of December 31, 2023.
The company updated its financial guidance for the full year 2024. The company now expects revenue in the range of $595 million to $605 million.
Street expects TXG’s revenue for the first quarter (ending March 2025) to increase 1.2% year-over-year to $142.72 million. For the fiscal year 2025, its revenue is expected to grow 6% year-over-year to $635.36 million.
TXG’s stock has declined marginally over the past month to close the last trading session at $15.48.
TXG’s POWR Ratings reflect its robust outlook. The stock has a B grade for Value and Quality. Within the Medical - Services industry, TXG is ranked #26 among 63 stocks.
Click here to access additional ratings of TXG for Momentum, Growth, Sentiment, and Stability.
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A shares were trading at $138.04 per share on Friday afternoon, down $0.10 (-0.07%). Year-to-date, A has declined -0.21%, versus a 28.10% rise in the benchmark S&P 500 index during the same period.
About the Author: Rjkumari Saxena
Rajkumari started her career as a writer but gradually shifted her focus to financial journalism, leveraging her educational background in Commerce. Fascinated by the interplay of business and economic shifts in equities, she aspires to evolve as an analyst. With a knack for simplifying complex financial concepts, her mission is to empower investors with insights that lead to profitable decisions.
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