Should You Hold Myriad Genetics Stock in Your Portfolio Right Now?

Myriad Genetics, Inc. MYGN focuses on the expansion of companion diagnostics, market expansion through new clinical guidelines and providing new offerings in its Oncology business. The company plans to drive a long-term growth strategy through investment in science and innovation, technology-enabled operations, strong commercial execution and scalable operations. Favorable solvency also appeals to the stock’s outlook. Yet, UnitedHealthcare’s GeneSight coverage end, as well as ongoing macro pressures, raise significant concerns for Myriad Genetics.In the past year, this Zacks Rank #3 (Hold) company’s shares have dropped 79% compared with the industry’s 12.6% fall and the S&P 500’s gain of 9.2%.The renowned genetic testing and precision medicine company has a market capitalization of $463.7 million. The company’s earnings yield of 0.2% remains ahead of the industry’s -29.4% yield.  MYGN’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 210%.Tailwinds for MYGN StockHuge Potential in Oncology Testing: Myriad Genetics sees considerable potential to serve community oncologists and healthcare systems that rely on its hereditary cancer and homologous recombination deficiency (HRD) tests. In February 2025, MYGN and Gabbi teamed up to provide an integrated offering that combines Gabbi’s risk assessment program and access to breast specialists with MyRisk with RiskScore. By adding PATHOMIQ’s AI technology platform to the portfolio, Myriad Genetics is now the only company that offers AI biomarkers, germline, and tumor profile testing. Also, the updated NCCN (National Comprehensive Cancer Network) guidance has included its Prolaris test in the guidelines for low, intermediate and high-risk patients at the time of initial biopsy.Moreover, Myriad Genetics was granted two new patents by the U.S. Patent and Trademark Office for bringing its MRD to market, building on three foundational patents awarded last year. The company is making progress in launching the Precise MRD test in the first half of 2026. Alongside this, Myriad Genetic plans to introduce its liquid biopsy therapy selection test called Precise Liquid.Image Source: Zacks Investment ResearchProgress With Strategic Priorities: In the first quarter of 2025, MyRisk testing volume in the affected population grew 11% year over year. The company’s stream of organically developed products, such as the new Prequel and upcoming launches of FirstGene and Precise molecular residual disease (MRD) tests, is expected to be a key growth driver. To supplement internal growth, MYGN announced a collaboration with PATHOMIQ, Inc., a developer of artificial intelligence (AI)-enabled prognostic and predictive tests.Additionally, Myriad Genetics’ women's health business holds strong potential, particularly with MyRisk cancer screening, which could benefit an estimated 50 million unaffected women in the United States who meet hereditary cancer testing guidelines. The prenatal testing business saw the strongest growth in the first quarter, with revenues increasing 11% year over year. Also, partnerships with JScreen and Cancer Care are driving positive momentum in hereditary cancer testing. Another key priority across the enterprise is investment in electronic medical records (EMR) solutions to improve the customer and patient experience, positioning it as an important driver of future volume growth.Strong Solvency: Myriad Genetics exited the first quarter of 2025 with cash and cash equivalents of $92 million and no short-term debt on its balance sheet. This is an upside in terms of the solvency level as, at least during the year of the economic downturn, the company is holding sufficient cash for debt repayment. What Concerns MYGN Stock?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. 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 hurt its profitability if it is unable to offset the increases by passing them on to customers.GeneSight Coverage End Risks Revenues: On Nov. 1, 2024, UnitedHealthcare updated its medical policy for pharmacogenetic testing to no longer provide coverage for certain multi-gene panel pharmacogenetic tests, including the GeneSight test, under its commercial, individual exchange benefit plans and certain managed Medicaid plans, effective during the first half of 2025. This has significantly impacted Myriad Genetics, with GeneSight revenues dropping 20% year over year in the first quarter.MYGN Stock Estimate TrendIn the past 30 days, the Zacks Consensus Estimate for the company’s 2025 earnings has dropped 3 cents to 1 cent.The Zacks Consensus Estimate for 2025 revenues is pegged at $811.7 million, suggesting a 3.1% fall from the year-ago reported number.Top MedTech StocksSome better-ranked stocks in the broader medical space are Phibro Animal Health PAHC, Hims & Hers Health HIMS and Cencora COR.Phibro Animal Health has an estimated long-term earnings growth rate of 26% compared with the industry’s 15.7%. Its earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 30.6%. Its shares have rallied 38.9% compared with the industry’s 10.1% growth in the past year.PAHC sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.Hims & Hers Health, currently carrying a Zacks Rank #2 (Buy), has an earnings yield of 1.3% against the industry’s -10.1% yield. Shares of the company have surged 129.7% compared with the industry’s 35.9% gain. HIMS’ earnings surpassed estimates in two of the trailing four quarters, matched on one occasion and missed on another, the average surprise being 2.8%.Cencora, carrying a Zacks Rank #2 at present, has an earnings yield of 5.4% compared with the industry’s 3.8%. Shares of the company have rallied 25.9% against the industry’s 14.4% decline. COR’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 6%.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 Myriad Genetics, Inc. (MYGN): Free Stock Analysis Report Cencora, Inc. (COR): Free Stock Analysis Report Phibro Animal Health Corporation (PAHC): Free Stock Analysis Report Hims & Hers Health, Inc. (HIMS): 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