After spending much of the past year in the shadow of greatness at a four-star rank, Myriad Genetics (Nasdaq: MYGN) has impressed enough top-performing members of our 165,000-strong Motley Fool CAPS community lately to spend some quality time at five stars. A total of 666 members have given their opinion on the medical diagnostics firm, with many of them offering analysis and commentary explaining the recent optimism.

Despite an unfavorable patent ruling and earnings miss earlier this year, more CAPS members have warmed up to Myriad Genetics' stock and believe shares are sitting at an attractive valuation today. Similar to peer Hologic (Nasdaq: HOLX), Myriad has seen some of the effects of unemployment creating fewer doctor visits, but its fiscal-third-quarter earnings still grew 31% and the company's full-year outlook calls for a 54% earnings increase over the prior fiscal year.

While Genzyme (Nasdaq: GENZ) has other ambitions and is moving to sell off its genetics and diagnostics businesses, many CAPS members see big potential for predictive and personalized medicine and think Myriad holds a strong position in the developing market with its diagnostic products and long list of patents. The market for diagnostic tests is expected to flourish over the next several years, and the potential benefits of bringing health-care costs down also has pharmacy benefit managers pushing into the space. Medco Health (NYSE: MHS) is promoting genetic tests, which it says is helping it win business, while rival CVS Caremark (NYSE: CVS) increased its investment last December in genetic testing services provider Generation Health. 

The momentum of other diagnostic test makers may be a good sign for Myriad's business. Abbott Labs (NYSE: ABT) saw a 22.6% jump in second-quarter molecular diagnostics sales and recently signed another deal with GlaxoSmithKline (NYSE: GSK) to develop a molecular diagnostic test for a particular antigen often expressed in skin cancer as Abbott Labs said last year that it's just seeing the beginning of personalized medicine. Add the market opportunity to the fact that Myriad carries no debt on its books and more than $4 per share in cash, and it's easy to see why many CAPS members are bullish on the investment.

Do you think Myriad Genetics deserves its raised status? Add your thoughts in the comments box below on this page, or head over to CAPS to rate the company and check out all the information and opinions the community offers, absolutely free.

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Fool contributor Dave Mock recently upgraded his refrigerator with more dazzling kid art. He owns no shares of companies mentioned here. MedcoHealth Solutions is a Stock Advisor pick. The Fool owns shares of GlaxoSmithKline. The Fool's disclosure policy always signals before changing lanes.