Here's Why Investors Should Buy Myriad Genetics Right Now

Myriad Genetics, Inc. (NASDAQ:MYGN) has rallied 12.2% over the last three months, ahead of the S&P 500’s 6.3% gain and also better than the broader industry’s decline of 4.6%. The stock has a market cap of $2.16 billion.

With solid prospects, this Zacks Rank #1 (Strong Buy) stock is an attractive pick at present.

Let’s find out whether the recent positive trend is a sustainable one:

The company’s estimate revision trend for the current year has also been positive. In the past 30 days, eight analysts moved north, with no movement in the opposite direction. Estimates rose around 1.9% to $1.05 per share. The company also yielded an average return of 15% for the last four quarters.

Myriad Genetics kick-started fiscal 2018 on a solid note and exited the first quarter with a year-over-year improvement in earnings and revenues. The company observed strong growth in GeneSight and EndoPredict test revenues along with continued year-over-year growth in Hereditary Cancer volumes with pricing matching expectations. The expansion in operating margin is also encouraging. The company’s reaffirmed guidance for fiscal 2018 also buoys optimism.

Myriad Genetics’ wholly-owned subsidiary Assurex Health recently formed an alliance with the Department of Veterans Affairs (VA) in PRIME Care (PRecision Medicine In MEntal Health Care) — a multi-center and national trial to evaluate the effectiveness of GeneSight test in improving health results for retired soldiers suffering from major depressive disorder (MDD).

Myriad Genetics and CareFirst BlueCross BlueShield recently inked an agreement to collaborate on a clinical utility study for the Vectra DA test in patients with rheumatoid arthritis (RA). The company is looking forward to this collaboration and expects it to speed up the reimbursement process for new technologies.

Other Key Picks

Other top-ranked medical stocks are PetMed Express, Inc. (NASDAQ:PETS) , Align Technology, Inc. (NASDAQ:ALGN) and Luminex Corporation (NASDAQ:LMNX) . Notably, PetMed, Align Technology sport a Zacks Rank #1, while Luminex carries Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

PetMed has a long-term expected earnings growth rate of 10%. The stock has rallied roughly 77.9% over the last year.

Align Technology has a long-term expected earnings growth rate of 28.9%. The stock has gained 156.3% in the last year.

Luminex has a long-term expected earnings growth rate of 16.3%. The stock has gained 2.8% in the last year.

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