10x Genomics (TXG) shares have posted a 34% gain over the past month, grabbing attention even without a headline-making event. Investors are taking notice and wondering whether this move reflects renewed confidence in the business.
10x Genomics’ share price has surged 34% over the past month, catching a strong wave of renewed interest, even as the 1-year total shareholder return stands at 19%. Despite a difficult few years, with a 3-year total return of -55% and -89% over five years, there is a sense that investor sentiment is turning a corner as the stock builds momentum.
If 10x Genomics' rally has you wondering what other growth stories might be brewing, this could be the perfect moment to discover See the full list for free.
The rapid ascent in 10x Genomics’ share price raises a fundamental question: Is the market underestimating its long-term potential, or is every bit of future growth already reflected in today’s valuation?
Advertisement
Most Popular Narrative: Fairly Valued
With the narrative’s fair value essentially matching the latest share price, there is little room for disagreement between analysts and the market right now. However, underlying business drivers could still shift the picture quickly, for better or worse. The next quote zeroes in on one of those pivotal elements.
Adoption of new lower-cost consumables (like GEM-X Flex and Universal On Chip Multiplex) is increasing reaction volumes and enabling scale, positioning 10x Genomics to capture growing demand in single-cell and multiomic analysis driven by precision medicine, likely supporting long-term revenue and recurring, high-margin consumables sales.
Why are analysts so confident about the valuation? The most important assumption in this narrative is a future business mix tilted toward premium products and scale advantages. Want to see what aggressive projections are hidden in the full story? Uncover the financial forecasts that make this price target possible.
However, ongoing funding uncertainty and shrinking pricing power could quickly shift the outlook if academic budgets tighten or if price declines continue.
Another View: Market Multiples Tell a Subtler Story
Looking at 10x Genomics through a price-to-sales lens reveals the shares trade at 3.1 times sales, notably cheaper than both the peer average (3.7x) and industry average (3.4x). This is also below the fair ratio of 3.9x that the market could eventually gravitate toward, which suggests shares might offer relative value, despite the challenges highlighted earlier. If market perception shifts, could this gap provide a cushion or just mask further risks?
If these conclusions don’t fit your perspective, you can easily dive into the numbers and assemble your own view of 10x Genomics in just a few minutes with Do it your way.
Stay ahead of the tech curve by checking out these 25 AI penny stocks leading breakthroughs in artificial intelligence innovation and high-impact growth.
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.
New: AI Stock Screener & Alerts
Our new AI Stock Screener scans the market every day to uncover opportunities.
• Dividend Powerhouses (3%+ Yield) • Undervalued Small Caps with Insider Buying • High growth Tech and AI Companies
A life science technology company, develops and sells instruments, consumables, and software for analyzing biological systems in the Americas, Europe, the Middle East, Africa, China, and the Asia Pacific.
