1-Star Price
PREMIUM
5-Star Price
PREMIUM
Economic Moat
PREMIUM
Capital Allocation
PREMIUM
Exact Sciences had a good start to the year, and first-quarter sales of $487 million was slightly above FactSet consensus and in line with our forecasts. We maintain our no-moat, positive moat trend rating, and $76 fair value estimate. After a decline of over 6% on April 26 (seemingly related to broad-based market declines), we now see shares as undervalued, closing at a 23% discount to what we think they are worth.
Exact Sciences Corporation, headquartered in Madison, Wisconsin, provides cancer screening and diagnostic test products in the United States and internationally. Exact’s Cologuard screening test, a non-invasive stool-based DNA test, is a pre-cancer screening test for colorectal cancer. The company also competes in the precision oncology market with Oncotype DX, a genetic-based treatment selection test for breast, prostate, and colon cancers. With the acquisitions of Base Genomics and Thrive Earlier Detection, Exact is building a multi-cancer early screening test to detect over 14 cancers, a test that would be one of earliest entrants in multi-cancer liquid biopsy cancer screening.
