Madison, Wisconsin – Exact Sciences Corporation, a prominent oncology diagnostic concern, is currently facing challenges in the market. After a significant rally, the company’s stock price has plummeted by a third, leaving investors wondering if it’s now a bargain buy.

Headquartered in Madison, WI, Exact Sciences is best known for its at-home screening test, Cologuard, a non-invasive stool-based DNA test used to detect biomarkers associated with colorectal cancer. Despite the stock currently trading around $43.00 a share, the company still maintains an approximate market capitalization of $7.9 billion.

In May 2024, Exact Sciences reported mixed Q1 financial results, which led to a 13% drop in the stock price. The company posted a GAAP loss of 60 cents per share, slightly below expectations, with a net loss of $110 million for the quarter. Revenues, however, rose nearly six percent year-over-year to $637.5 million, exceeding consensus estimates.

Management reaffirmed its FY2024 sales guidance, projecting revenues between $2.81 billion to $2.85 billion. Analysts, including firms like Guggenheim and Goldman Sachs, remain optimistic about the company’s future, with price targets ranging from $51 to $100 a share.

Despite the positive outlook from analysts, insiders at Exact Sciences have been consistent sellers of shares over the years. With just over $650 million in cash and marketable securities on the balance sheet, the company faces challenges in generating free cash flow.

Looking ahead, Exact Sciences is projected to continue experiencing losses until at least FY2026. With expenses on the rise and competition looming from companies like Guardant Health, the company’s future profitability remains uncertain, prompting a cautious stance on investing in Exact Sciences at this time.