3 Stocks For The Genomics Revolution

Over the next five years, the projection is that genomics is going to explode.

Genomics is the study of our DNA.

The cost of having your genome sequenced has dropped from billions to thousands of dollars – and will probably be as low as $100 in the near future.

This is significant. For one thing, the reduced cost has led to insurance companies starting to pay for patients to have clinical grade DNA tests, in the hopes of catching disease in its earliest stages.

Over the next five years, ARK Invest believes that the number of genomes sequenced will rise from 1.5 million tested in 2018 to 100 million by 2023.

If that is the case, it should be very positive for companies that specialize in genomics.

Here are three companies you may want to look into:

  1. Illumina (NASDAQ: ILMN): Illumina is the most dominant company in the genomics field, because 90% of all genes sequenced in the world are done so by using their machines. They are single-handedly responsible for driving down the cost of sequencing a whole human genome from millions of dollars to under a thousand and on the road to ultimately below $100.
  2. Invitae (NYSE: NVTA): Invitae is a much smaller company. But it has its sights on becoming the “Amazon of genomics” by making it very easy and convenient for people to get comprehensive genetic testing done during their yearly doctor’s visit.
  3. Veracyte (NASDAQ: VCYT): Another up and coming small-cap company in genomics. Veracyte is a genomics diagnostic company. The company is transforming the diagnosis of thyroid cancer, lung cancer and idiopathic pulmonary fibrosis.

Over the next five years, genomes sequenced are projected to grow 85% annually.

I don’t know if that will come to fruition, but if it does…that’s incredible growth!

 

My book, The Stock Market is For Everyone, is a short guide for the beginning, inexperienced investor that is easy to understand and can be put into action immediately.

Click the image of the book at left to be taken to its Amazon page.  (Disclosure: As a participant in the Amazon Services LLC Associates Program, I earn a small commission on each sale generated through these links.)

 

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My Top Stock Pick For 2019!

invitae stock

My top stock pick for 2019 is a company called Invitae (NYSE: NVTA).

Invitae is one of the leaders in molecular diagnostic testing.

What this means in plain English: through your primary care physician, you can have your entire genome sequenced to determine which diseases you are at high risk of developing.

Invitae is a small company with a market cap of $879 million.

Its mission is to bring comprehensive genetic information into mainstream medicine to improve health care for billions of people.

Invitae wants to aggregate the world’s genetic tests into a single service with higher quality, faster turnaround time, and lower cost.

Invitae’s growth has been off the charts.  In the 3rd quarter of 2018, the company reported an increase in revenue of 106%, driven by 95% increase in volume.

Invitae ended 2018 up 40%, which was great given the carnage the market experienced the last 3 months of the year.

Genomics will play a huge part in in the future of health care.  And Invitae will be one of its leaders.

Invitae is not for the faint of heart, because it can be very volatile.  However – it is a stock with tremendous growth potential that you should definitely watch.

Disclaimer/Disclosure Statement: Information in this article is not intended to be a recommendation to invest in any stock.  Rather, it is presented for readers’ education and consideration when making their own investment decisions.  The author is long NVTA.

 

My book, The Stock Market is For Everyone, is a short guide for the beginning, inexperienced investor that is easy to understand and can be put into action immediately.

Click the image of the book at left to be taken to its Amazon page.  (Disclosure: As a participant in the Amazon Services LLC Associates Program, I earn a small commission on each sale generated through these links.)