Should Myriad Genetics Stock Stay in Your Portfolio Right Now?

Myriad Genetics, Inc. MYGN is well-poised to grow in the coming quarters due to its impressive cadence of product launches. The company is also progressing well in its refreshed long-term strategy to drive accelerated growth across the Cancer Care Continuum (“CCC”) market. Favorable solvency further adds to the stock’s appeal. Meanwhile, UnitedHealthcare’s coverage end for GeneSight is expected to continue weighing on the company’s revenues. Macroeconomic woes also pose an issue.In the past year, this Zacks Rank #3 (Hold) company’s shares have dropped 53.7% against the industry’s19.1% growth and the S&P 500’s gain of 19.1%. The renowned genetic testing and precision medicine company has a market capitalization of $604.3 million. The company’s earnings yield of 0.2% remains ahead of the industry’s -29.4% yield. MYGN’s earnings surpassed estimates in three of the trailing four quarters and matched on one occasion, delivering an average surprise of 185%.Tailwinds for MYGN StockProduct Launches and Upgrades: Myriad Genetics invests in the development of new innovative testing products and enhances its existing portfolio of testing products. In 2024, the company launched the Prequel Prenatal Screen, which delivers critical insights at eight weeks of gestational age compared to 10 or 12 weeks. Myriad Genetics introduced the Foresight Carrier Screening test with a new Universal Plus Panel featuring an expanded panel of genes and more efficient workflows. In addition, it rolled out Precise Tumor, a next-generation sequencing assay that analyzes more than 500 cancer-related genes and key immuno-oncology biomarkers, with a broad coverage of guidelines.Image Source: Zacks Investment ResearchIn terms of the product pipeline, Myriad Genetics’ upcoming launch of the expanded MyRisk with RiskScore panel is expected to drive further growth and build on its leadership in the $6 billion market. Through its partnership with PATHOMIQ, MYGN is also on track to debut as the only company to offer AI, biomarker, germline and tumor profile testing.Renewed Strategic Priorities: Myriad Genetics’ refreshed long-range growth strategy centers on the CCC market. The company plans to leverage and grow its MyRisk hereditary cancer test volumes and also expand the portfolio in large, high-growth market segments, such as therapy selection and MRD.In September, the company partnered with SOPHiA GENETICS to offer pharma customers biomarker validation and CDx development services using a liquid biopsy-based therapy selection assay. The updated MyRisk test is also set to launch soon.The second pillar targets growing Prenatal Health and Mental Health revenues at or above market growth, while the third one is to sustain profitable growth by continuing to leverage Myriad Genetics’ strong gross margin profile and maintaining financial discipline. Regarding progress on these two, the company began early access for its FirstGene multiple prenatal screen, with full commercial launch expected next year. Myriad Genetics is also implementing changes to enhance customer experience, gain market share and reduce operating expense as a percentage of revenues.Strong Solvency With Slight Leverage: Myriad Genetics exited the third quarter of 2025 with cash and cash equivalents of $145.4 million and no current debt on its balance sheet. This is a positive in terms of the solvency level, as, at least during the year of the economic downturn, the company has sufficient cash for debt repayment.What Concerns MYGN Stock?GeneSight Coverage End Risks Revenues: On Nov. 1, 2024, UnitedHealthcare updated its pharmacogenetic testing policy, ending coverage for certain multi-gene panel pharmacogenetic tests, including Myriad Genetics’ GeneSight test, under its commercial, individual exchange benefit plans and certain managed Medicaid plans. Since becoming effective during the first half of 2025, it has affected the company’s Pharmacogenomics revenues, profitability and cash flows and is likely to continue to have a negative impact in future periods.Macroeconomic Concerns Put Pressure on the Bottom Line: With a substantial presence internationally, Myriad Genetics is exposed to a variety of regulatory, political, operational, financial and economic risks. This includes conflicting and changing laws and regulations, as well as handling logistics and regulations in shipping patient samples. The company expects inflation to continue to impact its labor costs, costs to generate sales and testing results, and costs of laboratory supplies. Furthermore, rising costs from U.S. tariffs could also hurt its profitability.MYGN Stock Estimate TrendIn the past 30 days, the Zacks Consensus Estimate for the company’s 2025 earnings has remained flat. The Zacks Consensus Estimate for 2025 revenues is pegged at $821.5 million, suggesting a 1.9% fall from the year-ago reported number.Top MedTech StocksSome better-ranked stocks in the broader medical space are lllumina ILMN, BrightSpring Health Services BTSG and Insulet PODD.Illumina has an earnings yield of 3.5% compared to the industry’s -17.8% yield. Shares of the company have risen 0.7% in the past year compared with the industry’s 19.1% growth. ILMN’s earnings outpaced estimates in three of the trailing four quarters and missed on one occasion, the average surprise being 6.7%.ILMN sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.BrightSpring Health Services, sporting a Zacks Rank #1,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 122.2% compared with the industry’s 7.8% growth in the past year.Insulet, carrying a Zacks Rank #2 (Buy), has an earnings yield of 1.7% compared with the industry’s 0.2% yield. Shares of the company have jumped 10.1% compared with the industry’s 2% growth. PODD’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 17.8%.#1 Semiconductor Stock to Buy (Not NVDA)The incredible demand for data is fueling the market's next digital gold rush. As data centers continue to be built and constantly upgraded, the companies that provide the hardware for these behemoths will become the NVIDIAs of tomorrow.One under-the-radar chipmaker is uniquely positioned to take advantage of the next growth stage of this market. It specializes in semiconductor products that titans like NVIDIA don't build. It's just beginning to enter the spotlight, which is exactly where you want to be.See This Stock Now for Free >>Want 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 Myriad Genetics, Inc. (MYGN): Free Stock Analysis Report Insulet Corporation (PODD): 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