Please ensure Javascript is enabled for purposes of website accessibility

Why Exact Sciences Stock Soared Today

By Keith Speights - Updated May 20, 2021 at 3:52PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The company's Cologuard DNA test appears to be in good shape to maintain its market leadership.

What happened

Shares of Exact Sciences (EXAS -0.51%) were soaring 9.8% higher as of 3:38 p.m. EDT on Thursday. The company announced on Wednesday that new data for its Oncotype DX tests will be showcased at the upcoming American Society of Clinical Oncology (ASCO) annual meeting in June. However, the primary catalyst was Guardant Health's (GH 2.99%) announcement on Wednesday of results for its blood test for early-stage colorectal cancer.

So what

It's not that Guardant Health's results for its Lunar-2 assay were bad; they weren't. The company reported an overall sensitivity of 91% in the detection of early-stage colorectal cancer with a specificity of 94%. Sensitivity is the ability of a test to correctly identify the presence of the disease, while specificity is the ability of a test to correctly identify people without the disease.

Scientist wearing a mask holding a vial with a blood sample

Image source: Getty Images.

Those results appear to put Guardant Health in a good position to obtain reimbursement from the U.S. Centers for Medicare and Medicaid Services (CMS). However, Exact Sciences' Cologuard stool-based colorectal cancer screening test should still be the market leader. That news was enough to provide a nice boost for the healthcare stock

Now what

The main thing to watch with Exact Sciences over the near term is how the COVID-19 pandemic impacts its business. The company stated in its Q1 conference call that in-person visits in March were roughly half of what they were before the pandemic, with patient wellness visits down between 10% and 20%. As COVID-19 concerns ease with more Americans receiving vaccines, more patients could go back to visiting their doctors -- which would likely boost the company's sales.

Keith Speights owns shares of Guardant Health. The Motley Fool owns shares of and recommends Guardant Health. The Motley Fool recommends Exact Sciences. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Exact Sciences Corporation Stock Quote
Exact Sciences Corporation
$46.81 (-0.51%) $0.24
Guardant Health, Inc. Stock Quote
Guardant Health, Inc.
$54.50 (2.99%) $1.58

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 08/08/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.