Veracyte Gains 44% in a Year: What's Driving the Stock?

Core Viewpoint - Veracyte (VCYT) has demonstrated significant growth, with a 44% increase in share price over the past year, outperforming the industry and S&P 500 [1] Company Overview - Veracyte, headquartered in San Francisco, CA, specializes in advanced genomic tests that enhance diagnostic and treatment decisions for cancer and other diseases, thereby reducing unnecessary procedures and expediting appropriate treatment [2] Growth Factors - The growth in Veracyte's share price is attributed to the strong performance of the Afirma solution, which reported a 12% increase in test results in Q3 2024, driven by new customer acquisition and retention [3] - The Decipher Prostate cancer tests are effectively predicting the risk of disease progression, with a record 21,250 tests conducted in Q3 2024, and the expansion of the Decipher franchise into bladder cancer [4] - Veracyte is investing in long-term growth drivers, including the Percepta Nasal Swab test and developing decentralized IVD tests in collaboration with Illumina, enhancing control over its supply chain [5] Financial Estimates - The Zacks Consensus Estimate projects a 137.3% increase in earnings per share (EPS) for 2024, reaching 38 cents, and a 65.8% increase for 2025, reaching 63 cents [9] - Revenues are expected to grow by 22.9% in 2024 to $443.9 million and reach$487.5 million in 2025 [9]