Why Exact Sciences Is Poised to Underperform

Brian Pacampara, The Motley Fool
Updated

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, molecular diagnostics company Exact Sciences has received a distressing two-star ranking.

With that in mind, let's take a closer look at Exact Sciences and see what CAPS investors are saying about the stock right now.

Exact Sciences

Headquarters (founded)

Madison, Wis. (1995)

Market Cap

$612.1 million

Industry

Biotechnology

Trailing-12-Month Revenue

$4.1 million

Management

CEO Kevin Conroy

CFO Maneesh Arora

Return on Equity (average, past 3 years)

(47.9%)

Cash/Debt

$108.1 million / $2.0 million

Competitors

CRH Medical

PreMD


Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 16% of the All-Star members who have rated Exact Sciences believe the stock will underperform the S&P 500 going forward.

Earlier this week, one of those Fools, zzlangerhans, touched on the stock's seemingly unsustainable valuation:

A [$600M] market cap is way too much for unconvincing sensitivity and specificity data that don't provide a convincing basis for widespread adoption of the Cologuard test. Exact is once again a trader's football and I expect the stock to move with the winds until a concrete catalyst emerges.

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The article Why Exact Sciences Is Poised to Underperform originally appeared on Fool.com.

Fool contributor Brian Pacampara has no position in any stocks mentioned, and neither does The Motley Fool. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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