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4-Star Stocks Poised to Pop: Genomic

Based on the aggregated intelligence of 135,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, Genomic Health (Nasdaq: GHDX  ) , which makes diagnostic tests for cancer, has earned a respected four-star ranking.

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

Genomic facts

Headquarters (Founded)

Redwood City, Calif. (2000)

Market Cap

$571.17 Million

Industry

Medical Laboratories and Research

Trailing-12-Month Revenue

$129.8 Million

Management

Co-Founder/Chairman Dr. Randal Scott

President/CEO Kimberly Popovits

Compound Annual Revenue Growth (Over Past Five Years)

97.1%

Cash/Debt

$55.73 Million/$1 Million

Other Highly Rated Medical Lab and Research Stocks

Quest Diagnostics (NYSE: DGX  )

LabCorp (NYSE: LH  )

CAPS Members Bullish on GHDX Also Bullish on

General Electric (NYSE: GE  )

Google (Nasdaq: GOOG  )

CAPS Members Bearish on GHDX Also Bearish on

Select Comfort (Nasdaq: SCSS  )

Osiris Therapeutics (Nasdaq: OSIR  )

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

On CAPS, 143 of the 152 members who have rated Genomic -- 94% -- believe the stock will outperform the S&P 500 going forward. These bulls include All-Stars TSIF and zzlangerhans, both of whom are ranked in the top 10% of our community.

A few months ago, TSIF urged Fools to focus on Genomic's top line:

Their tests for breast cancer have continued to see strong growth in sales. They are ramping up research and their sales force and overhead is making it appear that they are not growing. They have several more tests in clinical trials that are also promising. … Overall, this little genome company has shown that it has the ability to grow in this field. Decent revenue to fund future testing.

In a pitch from three days later, zzlangerhans shares that contrarian sentiment:

The company remains unprofitable as they aggressively pursue expanded indications for the Oncotype DX assay, but the burn rate is well controlled with a cash position that will carry them safely at least through the end of 2010 without dilution. [Because of] their reliance on a single product and lack of a clear pipeline, [Genomic] has an inherently weaker risk/reward profile when compared to [Myriad Genetics]. However, their current share price represents an attractive entry point given that they were at 27 a month ago without any change in fundamentals.

What do you think about Genomic, 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 get started!

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


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