(VIANEWS) – Shares of Exact Sciences (NASDAQ: EXAS) jumped by a staggering 27.35% in 21 sessions from $50.45 at 2022-12-23, to $64.25 at 19:26 EST on Wednesday, after three successive sessions in a row of losses. NASDAQ is dropping 0.18% to $11,313.36, after two sequential sessions in a row of losses.

Exact Sciences’s last close was $64.25, 23.79% under its 52-week high of $84.31.

Is Exact Sciences Stock a Good Investment?

Exact Sciences Corporation (NASDAQ:EXAS) is one of the largest providers of cancer diagnostic tests. The company focuses on early detection and prevention of cancer. Over the last five years, the company has grown its revenue by 683%. However, in the past 12 months, the company has not been profitable. This deterioration has put a major strain on the bottom line.

Despite the company’s growth, it may not be the right time to invest in EXACT Sciences. There are a few warning signs that suggest the company is in danger. One of them is increasing short interest.

Another concern is the high burn rate of the company. Over the past year, it has lost over $300 million in cash. In the past three months, the company’s stock has dropped more than 65 percent. It could mean the market is overvaluing the stock.

Regardless of its recent performance, Exact Sciences still has solid long-term financial position. They have less debt than they did in the past, which is a positive. Additionally, they generate 70%+ gross margins on their revenues.

The company’s growth has been driven by the popularity of their cancer screening products. The company’s flagship product, Cologuard, has become a leader in the colorectal cancer screening market. Despite a slowing economy, the company is still gaining market share.

The company’s competitive positioning also gives it exposure to the nascent liquid biopsy market. There are more than a dozen companies developing liquid biopsy tests, but Exact is the only one that offers a test that predicts chemotherapy benefit.

About Exact Sciences

Exact Sciences Corporation offers cancer screening and diagnostic products both in the United States as well internationally. Cologuard is a stool-based, non-invasive DNA screening test that detects DNA and hemoglobin biomarkers in colorectal and pre-cancer. Oncotype DX is a test that detects gene expression in breast, colon, and prostate cancers. It also offers Oncotype Test which provides tumor profiling for therapy selections for patients suffering from advanced, metastatic or recurrent cancers. Oncotype DX AR–V7 Nucleus Test for advanced stage prostate carcinoma. Oncomap ExTra provides an extensive biological picture for certain rare and aggressive cancers. Its products include a pipeline of products that improve the performance characteristics of the Cologuard test and develop blood- and fluid-based tests. Hologic, Inc. and MAYO Foundation for Medical Education and Research have license agreements. Exact Sciences Corporation, which was established in 1995, is located in Madison (Wisconsin).

Earnings per Share

Exact Sciences’ trailing 12 month EPS is $-5.61.

For the 12 trailing months, the company’s return-on-equity, which is a measure of the profitability and shareholder equity ratio, was negative at -21.71%.

Volatility

Exact Sciences’s intraday variation average for the week and quarter ended last week was negative 1.00%. It was positive 1.52% and positive 3.27%, respectively.

Exact Sciences had the highest average volatility amplitude at 2.54%, 3.55% and 3.27% respectively in last week.

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