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

Industry

Biotechnology

Trailing-12-Month Revenue

$545.3 million

Management

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

Return on Equity (average, past 3 years)

20.8%

Cash / Debt

$358.6 million / $0

Competitors

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.


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