Recs

10

5-Star Stocks Poised to Pop: Genoptix

Based on the aggregated intelligence of 135,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, laboratory services provider Genoptix (Nasdaq: GXDX  ) has earned a coveted five-star ranking.

With that in mind, let's take a closer look at Genoptix's business and see what CAPS investors are saying about the stock right now.

Genoptix facts

Headquarters (founded)

Carlsbad, Calif. (1999)

Market Cap

$469.2 million

Industry

Medical Laboratories and Research

Trailing-12-Month Revenue

$133.1 million

Management

Founder/CEO Tina Nova, Ph.D.

CFO Douglas Schuling

Return on Equity (average, last two years)

30.4%

Cash/Debt

$107.4 million/$0

Competitors

LabCorp (NYSE: LH  )

Genzyme (Nasdaq: GENZ  )

Quest Diagnostics (NYSE: DGX  )

CAPS Members Bullish on GXDX Also Bullish on

General Electric (NYSE: GE  )

Vale (NYSE: VALE  )

CAPS Members Bearish on GXDX Also Bearish on

Salesforce.com (NYSE: CRM  )

Sources: Capital IQ (a division of Standard & Poor's), and Motley Fool CAPS.

Over on CAPS, 247 of the 252 members who have rated Genoptix -- some 98% -- believe the stock will outperform the S&P 500 going forward. These bulls include All-Stars mrindependent, who is ranked in the top 10% of our community, and UltraLong, the second-ranked player in all of CAPS.

Just two weeks ago, mrindependent tapped Genoptix as "a rapidly growing blood and bone marrow diagnostics company." Our CAPS All-Star concludes: "This company's only real challenge is whether it can maintain high prices for its services. I expect continuing volatility with a strong upside bias."

In an earlier pitch, UltraLong pumped the most blood into the bull case. Below are a few excerpts, but be sure to check out the entire pitch here:

Genoptix main products, COMPASS and CHART facilitate the diagnosis and subsequent treatment of patients with potentially cancerous hematological disorders. ...

What I appreciate so much about Genoptix is its amazing potential. The company has by their estimates only 6% of the bone marrow market. ...

How about more actual fundamental figures? Cash ... lots and lots of cash. Around 106M dollars of it actually with zero, goose egg, nada, zippo debt! ...

The bone marrow market makes up what Genoptix describes as a 1 billion dollar a year industry and if they can simply double their exposure in that industry, that’d be another 60-70M dollars a year more. ...

I think a fair assessment taking into account their huge cash pile is $52-$54 within 24-30 months.

What do you think about Genoptix, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 135,000 investors are waiting to hear what you have to say. CAPS is 100% free, so simply click here to get started.

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Fool contributor Brian Pacampara owns no position in any of the companies mentioned. LabCorp is a Motley Fool Stock Advisor pick, Quest Diagnostics is an Inside Value choice, and Salesforce is a recommendation of Rule Breakers. The Fool's disclosure policy always gets a perfect score.


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