Veracyte Inc. (VCYT) is a genomic diagnostics company. It provides genomic diagnostic products and services to improve patient care against diseases such as thyroid cancer, lung cancer, and idiopathic pulmonary fibrosis.
The company initially struggled during the pandemic, but came back strong in the third quarter as its revenue and test volumes improved markedly, driven by a recovery in genomic testing. VCYT’s revenue for the third-quarter was $31.1 million, a 50% increase over the preceding quarter, and above its third-quarter 2019 numbers.
As of the end of the quarter, the company had $345 million in cash, compared to only $11 million in long-term debt. VCYT is also plenty of cash to handle short-term obligations with a sky-high current ratio of 26.6.
The company has a history of strong revenue growth, up an average of 17.9% over the past five years. Sales are expected to rise 32.6% this year. Its stock price is trading at a reasonable valuation with a P/E of 22.6.
While VCYT stock is down for the month, it has shown both near and long-term momentum. This mixed performance has led to a “Neutral” rating in our POWR Ratings system.
Take a look at the 1-year chart of VCYT below with my added notations…
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