Myriad Genetics, Inc.’s MYGN Oncology growth strategy, which focuses on expanding companion diagnostics and market growth through new clinical guidelines, is poised to drive growth in the upcoming quarters. The company’s innovative product launches and upgrades look encouraging. Yet, unfavorable currency fluctuations and competitive disadvantages may hurt Myriad Genetics’ operations.

In the past year, this Zacks Rank #3 (Hold) company’s shares have lost 56.8% compared with the industry’s 11.9% decline. The S&P 500 has gained 8.8% in the same time frame.

The renowned genetic testing and precision medicine company has a market capitalization of $840.96 million. MYGN’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 222.73%.

Tailwinds for MYGN Stock

Huge Potential in Oncology Testing: The company’s growth strategy for its Oncology business centers around the expansion of companion diagnostics, market expansion through new clinical guidelines, and new offerings. In 2024, Myriad Genetics secured three foundational patents, bolstering its ability to deliver highly sensitive and specific tumor-informed, sequencing-based minimal residual disease (MRD) assays, such as the Precise MRD test. 

Furthermore, the agreement with Personalis to cross-license patent estates covers tumor-informed approaches to MRD, strengthening its intellectual property position. Henceforth, with improved operational efficiencies paying dividends, a high Net Promoter Score among oncology providers and a fully equipped sales force, Myriad Genetics expects continued strong growth from its core oncology tests.

Product Launches and Upgrades: In 2024, research and development (R&D) expenses increased 27.8% year over year, mainly due to additional investments in new products and features, including expanded screening for Prenatal products and advancing the development of MRD tests. Myriad Genetics continues to gain customer acceptance, leveraging its diverse range of products.

In the fourth quarter of 2024, the company launched its new Prequel product, which delivers critical insights at eight weeks gestational age compared to 10 or 12 weeks. Additionally, in early 2024, Myriad Genetics introduced the Foresight Carrier Screening test, which features a new Universal Plus Panel with an expanded gene panel and more efficient workflows. The company has an active pipeline of innovative and clinically-relevant products supported by a growing volume of clinical studies and data.

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Headwinds for MYGN Stock

Foreign Exchange Headwinds: Myriad Genetics receives a considerable portion of its revenues and pays a portion of its expenses in foreign currencies. As a result, the company remains vulnerable to exchange rate fluctuations between foreign currencies and the U.S. dollar. Moreover, management does not currently use hedging strategies to mitigate foreign currency risk. This is also concerning, given that the dollar has strengthened in recent quarters, affecting many U.S. companies that trade in foreign currencies.

Increasing Competition: The entry of new players is another cause of concern, as it leads to imminent price competition. Per management, Myriad Genetics is currently facing competition in its key BRACAnalysis market. The company expects competition to intensify in its current fields, given recent advancements in technology. 

Furthermore, Myriad Genetics anticipates that other companies may also launch their own molecular diagnostic tests, which could compete with its testing products and services. In our opinion, competitive headwinds might push down prices for the high-priced tests provided by Myriad Genetics. This might deter margin improvement going forward.

MYGN Stock Estimate Trend

In the past 30 days, the Zacks Consensus Estimate for 2025 earnings has moved south 37.5% to 5 cents per share. 

The Zacks Consensus Estimate for 2025 revenues is pegged at $847.5 million, suggesting a 1.2% rise from the year-ago reported number.

Key Picks

Some better-ranked stocks in the broader medical space are Phibro Animal Health PAHC, Boston Scientific BSX and Cardinal Health CAH.

Phibro Animal Health has an estimated fiscal 2025 earnings growth rate of 62.2% compared with the industry’s 17.2%. Its earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 27.06%. The company’s shares have surged 73.5% compared with the industry’s 9.5% 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.

Boston Scientific, carrying a Zacks Rank #2 (Buy) at present, has an earnings yield of 2.7% compared with the industry’s 1.5%. Shares of the company have rallied 47.1% compared with the industry’s 9.5% growth. BSX’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 8.25%.

Cardinal Health, carrying a Zacks Rank #2 at present, has an estimated long-term earnings growth rate of 10.7% compared with the industry’s 9.5%. Shares of the company have rallied 17.5% against the industry’s 3.2% decline. CAH’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 9.64%.

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