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Guardant Health Inc GH

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Stock XNAS Rating as of
$26.41 −0.52 (1.93%)
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As of Delayed Price Pre-Open: $26.51 +0.10
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Company Report

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Guardant Health Earnings: Strong Results Lift 2023 Outlook Mildly; Shares Still Undervalued

Jay Lee

Guardant Health posted good third-quarter results and revised full-year guidance up by $7 million to $554.5 million using the midpoints of the ranges. Revenue in the quarter was $143 million, or 22% year-on-year growth, and precision oncology was $133 million, or 31% year-over-year growth. We maintain our $47 fair value estimate and think shares are undervalued. However, we reiterate that key products are not yet derisked, and the company is probably at least four or five years away from being profitable.

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Price vs Fair Value

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GH is trading at a 44% discount.
Price
$26.41
Fair Value
$28.00
Uncertainty
Very High
1-Star Price
$11.65
5-Star Price
$94.60
Economic Moat
Xmj
Capital Allocation
Ghcpwtjwb

Bulls Say, Bears Say

Bulls

Guardant is a leader in liquid biopsy and has been a step ahead of the competition, which could eventually enable it to secure a lasting first-mover advantage with its Shield test.

Bears

Guardant’s Shield could face stiff competition if multicancer early detection tests eventually achieve comparable sensitivity and pricing.

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Trading Information

Previous Close Price
$26.93
Day Range
$25.91–26.86
52-Week Range
$20.67–52.26
Bid/Ask
$26.43 / $27.77
Market Cap
$3.12 Bil
Volume/Avg
56 / 1.7 Mil

Key Statistics

Price/Earnings (Normalized)
—
Price/Sales
5.32
Dividend Yield
—
Dividend Yield (Forward)
—
Total Yield
—

Company Profile

Guardant Health, Inc, based in Redwood City, California, is a leader in liquid-based cancer tests for clinical and research use. The company offers Guardant360 LDT, a liquid biopsy test for treatment selection in advanced stage cancer, Guardant360 CDx, an FDA-approved companion diagnostic for several targeted therapies, and Guardant OMNI, a broader gene panel for immuno-oncology research. In 2021, Guardant launched Reveal, a tumor-agnostic molecular residual disease, or MRD, test. In 2022, the company launched Shield, a liquid biopsy for colorectal cancer, or CRC, screening. Additionally, Guardant offers research development services such as regulatory approval consultancy and clinical trial referrals.
Sector
Healthcare
Industry
Diagnostics & Research
Stock Style Box
Small Core
Total Number of Employees
1,793
Website
https://www.guardanthealth.com

Competitors

Valuation

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Metric
GH
ILMN
EXAS
Price/Earnings (Normalized)
 —128.46—
Price/Book Value
 13.633.003.75
Price/Sales
 5.323.954.83
Price/Cash Flow
 —30.24119.40
Price/Earnings
GH
ILMN
EXAS

Financial Strength

Metric
GH
ILMN
EXAS
Quick Ratio
 5.481.101.96
Current Ratio
 5.941.692.41
Interest Coverage
 −175.23−16.241.89
Quick Ratio
GH
ILMN
EXAS

Profitability

Metric
GH
ILMN
EXAS
Return on Assets (Normalized)
 −23.40%1.20%−130.44%
Return on Equity (Normalized)
 −281.51%2.11%−268.00%
Return on Invested Capital (Normalized)
 −27.39%1.58%2.24%
Return on Assets
GH
ILMN
EXAS

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A
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LH
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ILMN
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WAT
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