Investing in Genomics Stocks

Genomics stocks are companies involved in the study of genes to improve people's lives. These companies generally fall into one of three categories: genetic sequencing and analysis, genetic testing and diagnosis, and genetic editing.

With technological advancements dramatically improving the cost, accuracy, and time to map a person’s entire genome, many rapidly growing companies are emerging in the genomics sector. This doesn't always lead to financial rewards for investors, but there are several promising genomics stocks that could be long-term winners.

Best genomics stocks of 2025

Best genomics stocks of 2025

Companies 1 - 3

1. Natera

Natera is an industry leader in cell-free DNA (cfDNA) testing. It focuses on women's health and prenatal testing to detect genetic conditions, as well as tests to detect cancer and monitor organ health. Some of the tests it offers include:

• Panorama, a non-invasive prenatal test.
• Signatera, a tumor-specific assay for individualized cancer care.
• Prospera, a rejection assessment for kidney transplants.

This genomics company has delivered impressive results recently. In the second quarter of 2025, revenue increased by 32% year over year and the number of tests it processed increased by 12%. For the trailing 12 months (TTM) ending June 30, 2025, Natera earned $2 billion in revenue and $1.2 billion in gross profit.

Natera is also leveraging artificial intelligence (AI) technology. In August 2025, it launched its own proprietary AI models to drive innovation and enhance clinical decision making.

2. Avidity Biosciences

Avidity Biosciences develops targeted RNA therapeutics. It specializes in antibody oligonucleotide conjugates (AOCs), which are able to deliver to previously inaccessible tissues and cell types and target genetic drivers of disease.

This company has clinical development programs for three rare muscle diseases:

• Del-desiran (AOC 1001), its lead candidate, is a treatment for the muscle-wasting disorder myotonic dystrophy type 1.
• Del-brax (AOC 1020) is a treatment for facioscapulohumeral muscular dystrophy (FSHD).
• Del-zota (AOC 1044) is a treatment for people living with Duchenne muscular dystrophy amenable to exon 44 (DMD44). The U.S. Food and Drug Administration (FDA) granted Breakthrough Therapy designation to del-zota in July 2025. This designation expedites the drug review and development process.

Investors flocked to Avidity Biosciences last year as it reported positive data from its clinical trials. Since it’s in the development stage, it isn’t profitable yet, with net losses (TTM) of $456 million for the period ending June 30, 2025. However, it has a solid balance sheet with $1.2 billion in cash and cash equivalents.

3. Quest Diagnostics

Quest Diagnostics isn't strictly a genomics stock. It's a diagnostics company with about 8,000 patient access points, the most extensive network in the U.S., and 2,000 Quest patient service centers. It also has an extensive menu of more than 3,500 tests.

In addition, Quest Diagnostics offers a customizable suite of molecular genetic solutions. These include:

• Disease-state and specialty-based genomic testing.
• RNA sequencing (RNA-seq).
• Whole genome sequencing (WGS).
• Whole exome sequencing (WES).

One of the advantages of investing in Quest Diagnostics is that it's in a stronger financial position than most genomics stocks. It's profitable, with net income (TTM) of $945 million for the period ending June 30, 2025. Revenue over that same period was $10.5 billion. It also returns some extra cash to investors in the form of a dividend.

Companies 4 - 5

4. Exact Sciences

Exact Sciences developed the Cologuard home test for colon cancer as an alternative to colonoscopies. The company also acquired Genomic Health in 2019, bringing the Oncotype DX cancer diagnostics platform into its product lineup.

Cologuard has been a big revenue driver for this company, but it has been expanding its product lineup. In 2025, it launched Oncodetect, a molecular residual disease test, and Cancerguard, a first-of-its-kind multicancer early detection blood test.

Based on its recent results, Exact Sciences looks to be on the road to profitability, no small feat in the genomics market. Year-over-year revenue has been increasing, while net losses have been declining. For the 12-month period ended June 30, 2025, it has pulled in $2.9 billion in revenue.

5. Ionis Pharmaceuticals

Ionis Pharmaceuticals develops RNA-targeted medicine to treat serious diseases. Along with Biogen (BIIB -1.4%), it developed Qalsody, the first medicine for the genetic cause of amyotrophic lateral sclerosis (ALS). The FDA approved Qalsody in April 2023.

Genomics stocks can be boom or bust depending on the results of their clinical trials. Ionis investors got some great news in early September 2025, when the company announced positive top-line results from the phase 3 CORE and CORE2 studies of olezarsen in people with severe hypertriglyceridemia (sHTG).

Ionis has taken a net loss (TTM) of $268 million for the period ending June 30, 2025. While it hasn't been profitable so far, Ionis has several promising products in its drug pipeline and partnerships with large pharmaceutical companies.

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Investing in genomics stocks

Investing in genomics stocks

Technological advancements have made genomics an exciting area to invest in. All three of the broad categories encompassing genomics are expected to grow quite a bit, as well. Here are recent forecasts:

• The global gene sequencing market is projected to grow at a compound annual growth rate (CAGR) of 16.2% and reach $101.9 billion by 2034, according to Towards Healthcare.
• The market for genetic testing services is expected to grow at a 22.6% CAGR and reach $91.3 billion by 2034, according to BioSpace.
• The gene-editing market is forecast to grow at a 17.0% CAGR and hit $45.0 billion by 2034, according to Towards Healthcare.

The rapid growth expected in the genomic segments means there could be many winners. Investors can start by picking a company from the segment they find most attractive. Alternatively, investors can consider a basket strategy of putting money into several companies and watching them closely over several years.

Remember that progress is frequently sporadic with genomics companies. A buy-and-hold strategy is a must to give your holdings time to pay off.

Pros and cons

Pros and cons of investing in genomics stocks

Here are the biggest benefits of investing in genomics stocks:

• Genomics as a whole has significant growth potential. As the projections earlier showed, double-digit growth is expected for all three genomics markets.
• Companies that make major breakthroughs in treatments, diagnostics, or gene therapies deliver outsize returns to investors.
• There's always a need for new, innovative medical treatments. Like other healthcare companies, genomics companies usually have ample demand for their products and services.
• In addition to healthcare, genomics also has other applications, including crime scene forensics and even improving agricultural products.

However, there are also some notable downsides to know about before you invest:

• Genomics stocks can be highly volatile. Prices are often stagnant for long periods of time, and then rocket upward or plummet quickly based on one piece of news, such as the outcome of a clinical trial.
• These aren't the easiest businesses to understand, considering many are founded by serious researchers and even Nobel Prize winners. Investors who want to stick to what they know often avoid this sector, unless they have experience in it themselves.
• Many genomics companies operate at a loss for years during research and development (R&D) phases. This is another reason they're high-risk investments.

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How to invest

How to buy genomics stocks

When you know which genomics stock you want, here's how to invest in it:

1. Open your brokerage app: Log in to your brokerage account where you handle your investments.
2. Search for the stock: Enter the ticker or company name into the search bar to bring up the stock's trading page.
3. Decide how many shares to buy: Consider your investment goals and how much of your portfolio you want to allocate to this stock.
4. Select order type: Choose between a market order to buy at the current price or a limit order to specify the maximum price you're willing to pay.
5. Submit your order: Confirm the details and submit your buy order.
6. Review your purchase: Check your portfolio to ensure your order was filled as expected and adjust your investment strategy accordingly.

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