Is This the Right Time to Add Veracyte Stock to Your Portfolio?

Veracyte VCYT is making solid progress in its Afirma business line. The company’s Decipher franchise continues to be a strong tailwind, with remarkable test volume growth. Sound financial health also adds to the stock’s appeal. Meanwhile, the adverse impacts of macroeconomic challenges raise concerns for Veracyte’s operations.Over the past year, this Zacks Rank #3 (Hold) stock has gained 5.1% compared with the 1.2% rise of the industry and the S&P 500 composite’s 16.4% gain.The renowned diagnostics company has a market capitalization of $3.41 billion. The company’s earnings yield of 3.8% is well ahead of the industry’s -2.6% yield. Veracyte topped earnings estimates in each of the trailing four quarters, the average surprise being 45.1%.Positives for VCYT StockAfirma Continues to Outperform: Veracyte’s comprehensive Afirma solution, consisting of the Afirma GSC (Genomic Sequencing Classifier) and the Afirma Xpression Atlas, efficiently addresses the complex landscape in thyroid nodule diagnosis. In addition, the company is working to transition Afirma onto V2 of its Veracyte transcriptome running on the latest and most cost-effective next-generation sequencing technology this year.In the third quarter of 2025, it delivered strong 13% volume growth. The outstanding performance was driven by a steady pipeline of new account wins and yet another quarter of increased utilization per account. In November, Veracyte published two studies, demonstrating the Afirma GRID (Genomic Resource for Intelligent Discovery) research tool’s ability to help define the future of thyroid nodule evaluation. Strength of the Decipher Franchise: Veracyte extended the Decipher franchise into the bladder, which addresses nearly 82,000 people expected to be diagnosed with bladder cancer annually in the United States. The Decipher Bladder test became the first genomic test to be covered by Medicare and is expected to play a crucial role in the portfolio in the months to come. In the third quarter of 2025, the company performed roughly 26,700 Decipher tests, marking the 14th consecutive quarter of over 25% year-over-year volume growth and putting it on a trajectory to exceed 100,000 tests annually for the first time.In April, it announced the expanded availability of the Decipher Prostate test to patients with metastatic prostate cancer. The company also strengthened the clinical evidence for Decipher across all risk categories with 29 abstracts and nine publications, bringing the total to more than 225 publications.Image Source: Zacks Investment ResearchFavorable Liquidity Position: Veracyte exited the third quarter of 2025 with cash and cash equivalents of $366 million and no current debt, reflecting strong solvency.  The company’s ability to cover near-term obligations is further supported by a strong current ratio of 6.23. Consistent with the past quarters, it did not report any long-term debt at the end of the quarter under review.Concern for VCYTMacro Issues Hurt Growth: Veracyte’s operations are susceptible to macroeconomic challenges, such as ongoing interest rate increases and inflation in the United States and global markets, as well as evolving international trade policies and government actions relating to tariffs, among others. All these can lead to a surge in the company’s production and operating costs as well. In the third quarter of 2025, the total cost of revenues increased 11.6% year over year. Selling and marketing expenses rose 8.1% to $24.5 million, while general and administrative expenses increased 6% to $27.3 million.VCYT Stock Estimate TrendIn the past 30 days, the Zacks Consensus Estimate for Veracyte’s 2025 EPS has remained stable at $1.65.The Zacks Consensus Estimate for the company’s 2025 revenues is pegged at $508.6 million, which suggests a 14.1% rise from the year-ago reported number.Top MedTech PicksA few top-ranked stocks in the broader medical space are BrightSpring Health Services BTSG, lllumina ILMN and Insulet PODD.BrightSpring Health Services has an estimated long-term earnings growth rate of 53.3% compared with the industry’s 15.5% growth. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 45.1%. BTSG shares have surged 93.9% against the industry’s 0.1% decline over the past year.BTSG sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.Illumina, currently sporting a Zacks Rank #1, has an earnings yield of 3.7% compared to the industry’s -7.9% yield. Shares of the company have lost 10.8% over the past year against the industry’s 9.9% growth. ILMN’s earnings outpaced estimates in three of the trailing four quarters and missed on one occasion, the average surprise being 6.7%.Insulet, currently carrying a Zacks Rank #2 (Buy), has an earnings yield of 3.9% against the industry’s -0.9% yield. Shares of the company have lost 7.8% compared with the industry’s 2.6% decline. PODD’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 17.8%.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Illumina, Inc. (ILMN): Free Stock Analysis Report Insulet Corporation (PODD): Free Stock Analysis Report Veracyte, Inc. (VCYT): Free Stock Analysis Report BrightSpring Health Services, Inc. (BTSG): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks