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Here's How Much You'd Have If You Invested $1000 in Veracyte a Decade Ago
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How much a stock's price changes over time is important for most investors, since price performance can both impact your investment portfolio and help you compare investment results across sectors and industries.
Another thing that can drive investing is the fear of missing out, or FOMO. This particularly applies to tech giants and popular consumer-facing stocks.
What if you'd invested in Veracyte (VCYT - Free Report) ten years ago? It may not have been easy to hold on to VCYT for all that time, but if you did, how much would your investment be worth today?
Veracyte's Business In-Depth
With that in mind, let's take a look at Veracyte's main business drivers.
Headquartered in San Francisco, CA, Veracyte is a global diagnostics company that provides clinicians valuable insights to diagnose and treat cancer. The company has a wide array of advanced genomic tests that leverage deep scientific, clinical and machine learning expertise and other capabilities. Presently, the portfolio includes Afirma (for thyroid cancer), Decipher Prostate (prostate cancer), Prosigna (breast cancer), Envisia (interstitial lung diseases) and Decipher Bladder (bladder cancer), with additional tests in development.
These high-performing tests improve diagnostic, prognostic and treatment decisions in cancer and other challenging diseases, helping patients avoid unnecessary procedures and reduce time in finding appropriate treatment. In the United States, Veracyte offers tests through its central laboratories and makes the tests accessible to patients worldwide by collaborating with local labs.
The company recognizes revenues from three sources:
Testing revenues (90.4% of total revenues in 2023, up 30.3% from 2022): Upon delivery of the test results, the company bills for testing services considering factors such as payer reimbursement history, contracts and coverage.
Product revenues (4.3% of 2023 revenues; up 23.4%): Includes revenues from Prosigna breast cancer assay, the nCounter Analysis System (acquired from Nanostring Technologies, Inc. in 2019) and related diagnostic kits.
Biopharmaceutical and other revenues (5.2% of 2023 revenues; down 43.2%): Includes revenues from licensing or providing access to the company’s assets and services, including testing and contract manufacturing.
The company’s 2021 acquisition of Decipher Biosciences expanded its genomic testing menu into urologic cancers and provided Decipher GRID (Genomic Resource for Intelligent Discovery) — a platform and database that helps drive biopharmaceutical partnerships, key opinion leaders (KOL) engagement and pipeline development in urologic cancers.
In the same year, Veracyte acquired HalioDx, which enabled it to produce its own in vitro diagnostic (IVD) test kits for use on the nCounter Analysis System. Veracyte intends to migrate the manufacture of the test kits for the nCounter from NanoString to HalioDx.
Bottom Line
Anyone can invest, but building a successful investment portfolio requires research, patience, and a little bit of risk. So, if you had invested in Veracyte ten years ago, you're likely feeling pretty good about your investment today.
According to our calculations, a $1000 investment made in September 2014 would be worth $3,293.67, or a 229.37% gain, as of September 18, 2024. Investors should keep in mind that this return excludes dividends but includes price appreciation.
Compare this to the S&P 500's rally of 181.51% and gold's return of 101.51% over the same time frame.
Analysts are forecasting more upside for VCYT too.
Veracyte continues with a robust display of strength in the testing business using its established diagnostic platform. Affirma’s differentiation is leading to market share gains. The new GRID ROU tool is gaining strong interest from physicians, while the MolDX’s finalization of an expanded local coverage determination for Afirma reinforces the company’s competitive position. The Decipher Prostrate test is also making strides, achieving a ‘Level 1B’ designation in the updated NCCN guidelines and advancing on the reimbursement front. Veracyte’s strategic R&D investment in long-term growth driver projects is paying off. Favorable solvency appears encouraging. Meanwhile, the company’s biopharma business faces challenges due to industry-wide spending constraints and less projects.
Shares have gained 8.30% over the past four weeks and there have been 3 higher earnings estimate revisions for fiscal 2024 compared to none lower. The consensus estimate has moved up as well.
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Here's How Much You'd Have If You Invested $1000 in Veracyte a Decade Ago
How much a stock's price changes over time is important for most investors, since price performance can both impact your investment portfolio and help you compare investment results across sectors and industries.
Another thing that can drive investing is the fear of missing out, or FOMO. This particularly applies to tech giants and popular consumer-facing stocks.
What if you'd invested in Veracyte (VCYT - Free Report) ten years ago? It may not have been easy to hold on to VCYT for all that time, but if you did, how much would your investment be worth today?
Veracyte's Business In-Depth
With that in mind, let's take a look at Veracyte's main business drivers.
Headquartered in San Francisco, CA, Veracyte is a global diagnostics company that provides clinicians valuable insights to diagnose and treat cancer. The company has a wide array of advanced genomic tests that leverage deep scientific, clinical and machine learning expertise and other capabilities. Presently, the portfolio includes Afirma (for thyroid cancer), Decipher Prostate (prostate cancer), Prosigna (breast cancer), Envisia (interstitial lung diseases) and Decipher Bladder (bladder cancer), with additional tests in development.
These high-performing tests improve diagnostic, prognostic and treatment decisions in cancer and other challenging diseases, helping patients avoid unnecessary procedures and reduce time in finding appropriate treatment. In the United States, Veracyte offers tests through its central laboratories and makes the tests accessible to patients worldwide by collaborating with local labs.
The company recognizes revenues from three sources:
Testing revenues (90.4% of total revenues in 2023, up 30.3% from 2022): Upon delivery of the test results, the company bills for testing services considering factors such as payer reimbursement history, contracts and coverage.
Product revenues (4.3% of 2023 revenues; up 23.4%): Includes revenues from Prosigna breast cancer assay, the nCounter Analysis System (acquired from Nanostring Technologies, Inc. in 2019) and related diagnostic kits.
Biopharmaceutical and other revenues (5.2% of 2023 revenues; down 43.2%): Includes revenues from licensing or providing access to the company’s assets and services, including testing and contract manufacturing.
The company’s 2021 acquisition of Decipher Biosciences expanded its genomic testing menu into urologic cancers and provided Decipher GRID (Genomic Resource for Intelligent Discovery) — a platform and database that helps drive biopharmaceutical partnerships, key opinion leaders (KOL) engagement and pipeline development in urologic cancers.
In the same year, Veracyte acquired HalioDx, which enabled it to produce its own in vitro diagnostic (IVD) test kits for use on the nCounter Analysis System. Veracyte intends to migrate the manufacture of the test kits for the nCounter from NanoString to HalioDx.
Bottom Line
Anyone can invest, but building a successful investment portfolio requires research, patience, and a little bit of risk. So, if you had invested in Veracyte ten years ago, you're likely feeling pretty good about your investment today.
According to our calculations, a $1000 investment made in September 2014 would be worth $3,293.67, or a 229.37% gain, as of September 18, 2024. Investors should keep in mind that this return excludes dividends but includes price appreciation.
Compare this to the S&P 500's rally of 181.51% and gold's return of 101.51% over the same time frame.
Analysts are forecasting more upside for VCYT too.
Veracyte continues with a robust display of strength in the testing business using its established diagnostic platform. Affirma’s differentiation is leading to market share gains. The new GRID ROU tool is gaining strong interest from physicians, while the MolDX’s finalization of an expanded local coverage determination for Afirma reinforces the company’s competitive position. The Decipher Prostrate test is also making strides, achieving a ‘Level 1B’ designation in the updated NCCN guidelines and advancing on the reimbursement front. Veracyte’s strategic R&D investment in long-term growth driver projects is paying off. Favorable solvency appears encouraging. Meanwhile, the company’s biopharma business faces challenges due to industry-wide spending constraints and less projects.
Shares have gained 8.30% over the past four weeks and there have been 3 higher earnings estimate revisions for fiscal 2024 compared to none lower. The consensus estimate has moved up as well.