Why Myriad Genetics Is Ready to Rebound

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, molecular diagnostic company Myriad Genetics (NASDAQ: MYGN  ) has earned a respected four-star ranking.

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

Myriad facts

Headquarters (founded)

Salt Lake City, Utah (1991)

Market Cap

$2.1 billion



Trailing-12-Month Revenue

$545.3 million


CEO Dr. Peter D. Meldrum, Ph.D.
CFO James Evans

Return on Equity (average, past 3 years)


Cash / Debt

$358.6 million / $0


Abbott Labs
Roche Holding
Siemens Healthcare

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 87% of the 612 members who have rated Myriad believe the stock will outperform the S&P 500 going forward.

Just yesterday, one of those Fools, All-Star zzlangerhans, tapped Myriad as a particularly tempting turnaround opportunity:

Why is the market cap in February 2013 practically the same as the cap in December 2007 despite a tripling of revenue and a swing from an [$8M] loss to a [$35M] profit? ... The company hasn't diluted like most growing biopharmas either. In fact, they've been buying back shares aggressively. ...

It's clear that there's an overhang, and I'm virtually certain that the overhang is due to the upcoming Supreme Court decision on the legitimacy of the BRCA gene patents that Myriad has utilized to defend their BRACAnalysis IP from competitors. ...

I'm hardly a constitutional scholar, but I think the Supreme Court decision is a toss-up. I see two ways to play Myriad -- a run-up ahead of the decision, or for a rebound after a ruling against Myriad. I do think at a certain point the current anxiety dragging the share price down will peak and be replaced by a more balanced sentiment.

If you want market-thumping returns, you need to put together the best portfolio you can. Of course, despite a strong four-star rating, Myriad may not be your top choice.

Myriad's competitor Abbott Labs saw a big change recently: a new company called AbbVie. Formerly Abbott's branded pharmaceuticals business, shares of the new stock were distributed to investors on Jan. 2. To help all investors better understand this change in the health care landscape, The Fool has created a brand new premium report on both stocks. Inside, we outline all of the must-know opportunities and risks facing both companies, so make sure to claim this report by clicking here now.

Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.

Read/Post Comments (0) | Recommend This Article (3)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2247322, ~/Articles/ArticleHandler.aspx, 9/27/2016 5:10:57 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 7 hours ago Sponsored by:
DOW 18,094.83 -166.62 -0.91%
S&P 500 2,146.10 -18.59 -0.86%
NASD 5,257.49 -48.26 -0.91%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/26/2016 4:00 PM
MYGN $21.57 Down -0.10 -0.46%
Myriad Genetics CAPS Rating: ****
ABT $41.68 Down -0.51 -1.21%
Abbott Laboratorie… CAPS Rating: *****