Meet the Healthcare Stock That Produced Nvidia-Sized Gains in Less Than a Year

Core Insights - GeneDx Holdings has experienced a remarkable stock increase of 6,070% over the past year, significantly outperforming Nvidia's 2,700% return over five years [2] - The company has shifted its focus to pediatric neurologists, which could lead to further growth opportunities as it has only penetrated 12% of this market [9] Financial Performance - GeneDx reported a 44% year-over-year revenue growth in Q3, reaching $76.9 million, with genome and exome sequencing now accounting for 78% of total revenue [5] - The adjusted gross margin improved to 64.4% in Q3 from 50.7% in the previous year [5] - Despite losses on a GAAP basis, the company reported an adjusted profit of $1.2 million in Q3 after accounting for noncash expenses [6] Market Position and Guidance - Management raised the revenue guidance midpoint for the full year to $287 million from a previous estimate of $260 million [7] - Wells Fargo increased its price target for GeneDx from $34 to $75 per share, although it maintained an equal weight rating due to high valuation [7][8] Competitive Landscape - GeneDx holds an 80% share of the U.S. exome sequencing market, with newborn screening representing a $10 billion annual opportunity [10] - The diagnostics industry is highly competitive, and while GeneDx is currently successful, the entry of new competitors could impact profitability [11][12]