Is Exact Sciences (EXAS) Still Undervalued After Its Recent Share Price Surge?

Exact Sciences (EXAS) has quietly become one of the stronger movers in diagnostics this month, with shares climbing sharply as investors focus on its improving revenue growth and narrowing losses in cancer testing.

See our latest analysis for Exact Sciences.

That sharp 30 day share price return of over 50 percent builds on a powerful 90 day gain and a 67 percent one year total shareholder return. This is a clear sign that sentiment has swung toward Exact Sciences growth story despite its still negative earnings.

If Exact Sciences has put diagnostics back on your radar, it is worth exploring other healthcare names using our screener for healthcare stocks as potential next wave opportunities.

With the stock now near analyst targets after a powerful run and the business still posting sizable losses, the key question is whether Exact Sciences remains undervalued or if the market is already pricing in its next leg of growth.

Most Popular Narrative: 2% Undervalued

With Exact Sciences last closing at $101.50 against a narrative fair value of roughly $103.67, the story leans toward modest upside that hinges on sustained execution and improving profitability.

Multi-year operational cost optimization initiatives (targeting $150M in annual savings by 2026 via automation, AI-driven lab/process efficiencies, and reduced G&A spend) are establishing a foundation for expanding EBITDA and net margins over time, especially as scale effects take hold.

Read the complete narrative.

Want to see how much faster profits are expected to grow than sales, and what kind of future multiple that implies for a still unprofitable cancer specialist? The narrative leans on an aggressive swing from deep losses to healthy margins, plus a premium valuation usually reserved for more mature names. Curious which specific earnings and margin targets have to fall into place for this fair value to hold up? Read on to unpack the full set of assumptions behind that price.

Result: Fair Value of $103.67 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, execution is far from guaranteed, with heavy R&D spending, deal risk, and intensifying colorectal screening competition all capable of derailing the optimistic earnings path.

Find out about the key risks to this Exact Sciences narrative.

Build Your Own Exact Sciences Narrative

If you see the story differently or want to dig into the numbers yourself, you can build a custom view in just minutes: Do it your way.

A good starting point is our analysis highlighting 3 key rewards investors are optimistic about regarding Exact Sciences.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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