guardant health investment thesis

The regulatory signoff should raise hopes for Guardant’s broad portfolio of cancer tests, which aim to detect all stages of the disease through liquid biopsy. With EV at 28.5x of 12-month forward sales, the company trades at a ~24.8% discount to its 2019 average of ~37.9x. Janssen Biotech has already teamed up with Guardant to develop and commercialize Guardant360 as a companion diagnostic for its experimental NSCLC therapy, amivantamab. Guardant Health's shares sank as much as 34% off the highs from earlier in the year before rebounding. Why? NVDA. The most promising test, under development seeking FDA approval and CMS coverage, the LUNAR-2 assay targets early cancer detection in asymptomatic and high-risk individuals. By comparison, the company's total revenue last year was $214.4 million. However, the Street forecast for NTM (next twelve-month) revenue at ~$346.5 million implies ~27.7% YoY growth. See you at the top! If you had invested in the stock at its IPO, your initial investment would have nearly quadrupled in 20 months.That’s a whole lot better than tripling in a decade. Log in; Seeking Alpha. When they arrive on the scene, investors flock to them. Guardant Health: FDA Signoff And Vaccine Optimism To Materialize Gains (NASDAQ:GH) Investment Thesis With the FDA approval for Guardant360, Guardant Health, Inc. (GH) has achieved a milestone for its broad array of cancer detection …. Selective Estrogen Receptor Degrader in Phase III Trial For Use in Resistant ER-Positive Breast CancerREDWOOD CITY, Calif., July 30, 2020 (GLOBE NEWSWIRE) -- Guardant Health… Is it too late to make a lot of money by investing in Guardant Health? The lukewarm growth forecasts seen in consensus revenue and the … Yet, with no subsequent rally in the share price, the investor reaction has largely been muted, most likely due to the concerns over the pandemic-induced slowdown in test volumes. Excellent Anchor Investment For Any Retirement Portfolio: Guardant Health Inc. (GH)... Edward Bosworth-November 5, 2020. The Ascent is The Motley Fool's new personal finance brand devoted to helping you live a richer life. The lukewarm growth forecasts seen in consensus revenue and the discount in trading multiple compared to the historical average underscore the concerns. As investors, we're taught one simple truth: Nothing is guaranteed. I am not receiving compensation for it (other than from Seeking Alpha). Better Coronavirus Stock: Quidel or Guardant Health? However, as the coronavirus cases showed signs of easing in August following the surge in early summer, a slight recovery has begun in Q3 2020. The ongoing clinical trials will only accelerate the rising cash burn. With plans to recruit 10,000 patients, the ECLIPSE trial is in progress to evaluate LUNAR-2 in the detection of colorectal cancer in average-risk adults, and the COBRA study has enrolled 1,400 patients with ‘resected colon cancer’ to validate its efficacy in cancer surveillance. Stock Advisor launched in February of 2002. Guardant Health. Backed by better payer coverage for its late-stage cancer detection test, Guardant Health, Inc. has seen its top-line rising more than a two-fold from the previous year. With the FDA approval for Guardant360, Guardant Health, Inc. (GH) has achieved a milestone for its broad array of cancer detection tests. The NTM EV/Sales is also trading at a discount compared to historicals. Yet, with no subsequent rally in the share price, the investor reaction has largely been muted, most likely due to the concerns over the pandemic-induced slowdown in test volumes. According to Illumina, early detection could make up ~61% of the global market for cancer genetic sequencing, which is growing at 27% of CAGR (compound annual growth rate) to reach $75 billion by 2035. Guardant Health (NASDAQ:GH) definitely has such an X factor. Gets Its Catalyst And Trades Up: Twitter Inc. (TWTR), Guardant Health Inc. (GH) By. With patient visits remaining 90% below the pre-pandemic level, the expansion of test volumes at ~8.0% YoY in Q3 2020 stands far below the ~76.6% YoY growth in 2019. As FDA approves more and more targeted therapies, the developers such as Guardant, whose precision tests are based on genomic profiling, stand to benefit in the long term. So how much would that $10,000 investment in the company's IPO be worth now? Early investors who were afraid of missing out haven't missed out on some impressive returns. Assuming the historical average of trading multiple, our more sanguine revenue forecast for the next 12-months indicates an attractive premium offsetting the near-term concerns over growth. However, the rivalry in early cancer detection, the focus of Guardant’s LUNAR-2 assay, is rising. Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. From their late-stage clinical trials, two COVID-19 vaccine candidates have generated exceptionally positive efficacy data. By comparison, the company's … As opposed to pandemic-era virtual promotions, more effective in-person physician engagement by sales staff can raise the clinical adoption rates as social restrictions ease. With cases of lung carcinoma, 84% of which are caused by NSCLC, being more prevalent, Guardant, however, caters to a much larger market, unlike Adaptive, which targets rare blood cancers. Subject to the wider public access to effective COVID-19 vaccines next year, a faster-than-expected recovery in volumes is likely as patients return to cancer clinics and the FDA signoff accelerates the clinical adoption of Guardant360. Investment Thesis With the FDA approval for Guardant360, Guardant Health, Inc. (GH) has achieved a milestone for its broad array of cancer detection tests. Sources: The Author; Data from Seeking Alpha and the Author Estimates. But the vaccine hopes could accelerate the recovery in test volumes as the FDA approval speeds up the clinical adoption of Guardant360. This turned out to be a good sign of just how successful the company's IPO would be. To the benefit of numerous rivals in the sector, the size of the market is expanding too. Roche (SIX:ROG; OTCQB:RHHBY), Basel, Switzerland. The one investment that's never let long-term investors down. The total Institutional investors and hedge funds own 84.80% of … As the company’s long-term prospects in early cancer detection and the precision-oncology outweigh the near-term risks from COVID-19, Guardant is a compelling ‘Buy’ for us. window.SA = {"App":{"name":"SA","fullName":"Seeking Alpha","type":"regular","host":"https://seekingalpha.com","financeApiHost":"https://finance.api.seekingalpha.com","emailHost":"https://email.seekingalpha.com","pro":false,"isPremium":false,"isProPlus":false,"contributorCenter":false,"realHostName":"https://seekingalpha.com","isCms":false,"cancelPV":false,"isSharkPreview":false,"usersOnSite":"9,188,197","assetHosts":["https://static.seekingalpha.com","https://static1.seekingalpha.com","https://static2.seekingalpha.com","https://static3.seekingalpha.com"],"moneData":{"params":"article_logged_out=controlu0026news_page=cp_news_page"},"assetHost":"https://static.seekingalpha.com","userEchoHost":"https://feedback.seekingalpha.com","unbounceHost":"https://subscriptions.seekingalpha.com","env":{"dev":false,"staging":false,"production":true,"test":false},"gaAccountId":"UA-142576245-1","pianoAccountId":"CWJjPp7cpu","comscoreAccountId":8500672,"fbAppId":"2459764930747368","googleClientId":"853676697728-j4qpq4pfialt14ibl9ppa3tk37m6kc9e.apps.googleusercontent.com","twitterAccountName":"SeekingAlpha","rollbarToken":"5edf110be2fc4cecb32637fc421111e2","perimeterXAppId":"PXxgCxM9By","embedlyKey":"a6da93fdfc49472099ce63260954716b","mp":false,"chat":{"host":"https://rc.seekingalpha.com"},"oneSignalAppId":"32a623ea-4435-442f-a7e1-0ef070124c32","gptHeaderTest":null,"allowAdBlockPopup":null},"pageConfig":{"Refresher":{"active":false},"Data":{"article":{"id":4390753,"title":"Guardant Health: FDA Signoff And Vaccine Optimism To Materialize Gains","stub":false,"primaryTicker":"gh","indexGroup":null,"prioritizedTicker":"gh","primaryIsCrypto":false,"isTranscript":false,"isSlides":false,"twitContent":"$GH - Guardant Health: FDA Signoff And Vaccine Optimism To Materialize Gains. 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