If you’ve been tracking 10x Genomics (TXG), the stock’s recent moves might have left you with more questions than answers. There hasn’t been a headline-grabbing event to drive the price action, but sometimes a quiet period is just as telling for investors. When shares drift or slide without clear news, it can be a cue to dig deeper into what’s getting priced in or what the market might be missing.
Looking at the bigger picture, momentum for 10x Genomics hasn’t exactly been trending upward. The stock has seen a decline of over 45% in the past year, even as there was a recovery of just over 7% in the past three months. Revenue growth remains positive, but earnings are still shrinking year over year. This pattern, combined with the lack of a recent catalyst, keeps valuation questions front and center.
So with this year’s extended decline and only a modest bounce lately, is 10x Genomics now trading at a bargain, or is the market simply factoring in years of muted growth ahead?
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Most Popular Narrative: 17.2% Undervalued
According to the most widely followed narrative, 10x Genomics appears significantly undervalued, with fair value estimated at a solid premium over the current share price. Analyst consensus points to long-term upside based on future growth and margin improvement.
“Recent and upcoming product launches, including Flex v2 (targeting higher throughput, lower costs, and AI integration), Visium HD extensions, and Xenium RNA plus protein, are expanding the range of applications and reinforcing 10x's leadership in advanced genomics tools. These launches are expected to drive both top-line growth and sustain premium pricing over time.”
What’s fueling this provocative valuation gap? The narrative leans on surprisingly ambitious improvements in future profitability and revenues, backed by assumptions you won’t want to miss. Want to understand the core growth drivers and the specific numbers behind this fair value? This narrative’s blueprint could spark major discussion among investors looking for the next breakthrough play.
However, persistent macroeconomic uncertainty and continued pressure on academic funding could challenge the company’s growth prospects and undermine this undervalued narrative.
The SWS DCF model uses a different approach but reaches a similar conclusion, reinforcing the idea that 10x Genomics may be undervalued relative to its future cash flows. Could DCF assumptions reveal hidden upside, or are both methods missing risks just ahead?
Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out 10x Genomics for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover undervalued stocks based on their cash flows. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.
Build Your Own 10x Genomics Narrative
If you see things differently or want to draw your own conclusions from the data, it takes just a few minutes to put together your own perspective. Do it your way.
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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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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.
