Guardant Health Stock Forecast [126% Growth]

Guardant Stock Forecast: The war against cancer hasn’t been won – yet – but the tide is turning. Biotechs all over the world are pouring resources into finding better ways to diagnose and treat the disease in all its forms, and new therapies are being introduced to the market every year.

As a result, the quality of life for those in treatment has improved dramatically, and survival rates are going up. A look at the many product candidates currently in clinical trials offers hope that before long, cancer will lose its place as the second-leading cause of death in the United States.

One of the biggest problems facing physicians and patients battling cancer is the delay between the disease’s onset and the start of treatment. In many cases, signs and symptoms are subtle. It isn’t until the cancer is somewhat advanced that patients take action. As with most conditions, the longer cancer is left alone to grow and spread, the more difficult it is to treat successfully.

Guardant Health is in the process of designing a simple, fast, and highly-effective blood test that could offer dramatic new opportunities for catching cancer in its earliest stages.

It is also leading the industry in identifying customized treatments for cancer patients. The company held its IPO just over a year ago, and early investors are realizing impressive rewards. Now those who haven’t yet gotten on board want to know, is it too late? Have stock prices peaked, or is Guardant Health stock a buy?

What Does Guardant Health Do?

Better information means better outcomes for cancer patients, and more information makes it possible for researchers to develop advanced cancer treatments – and perhaps even cures.

Guardant Health is on a mission to make data collection easy, and it is committed to compiling and analyzing the data it collects to put it to work in the war against cancer.

Guardant Health is working on a three-pronged approach to improving access to information through three separate applications of its technology.

[1] The first is already commercially available. Guardant360 gives oncologists deep insight into individual cancers through detailed genomic information.

Until this method was introduced, the only way to collect such data was through an invasive tissue biopsy, which presented risk for patients — assuming it was possible to access the tumor at all. Guardant360 collects needed samples through a blood test, with results available in approximately seven days. Physicians use the genomic information to select a personalized treatment that has been proven effective for the specific cancer in question.

Guardant360 was launched in 2014, and it has been used by more than 5,000 oncologists. All 27 of the National Comprehensive Cancer Network Centers have leveraged this science, and many researches use it to tighten patient selected for their clinical trials.

[2] A second exciting application of this technology is in the works – a system of early cancer detection through a simple blood draw known as LUNAR-2.

The earlier cancer is diagnosed, the more likely a patient is to beat it. Simplified screenings make it easier and less expensive for patients to have the procedure done. Better yet, this method appears to be more accurate than existing technology.

This product candidate is currently available for research use, and a variety of scientists in academic and biopharma settings are already employing it in their work. With the support of this technology, partners are better able to develop new methods of prevention and early treatments for various types of cancer.

[3] Finally, Guardant Health is developing LUNAR-1 to focus on better identification of residual and recurring cancer in oncology patients. This is possible, in part, because of the massive amount of data Guardant Health has collected, as well as the advanced analytics it applies to the information.

Improvements in the sensitivity and specificity of tools used to recognize recurring cancers will give patients more peace of mind when results are negative, and they will ensure that if the cancer hasn’t been eliminated, physicians can adjust their approach as quickly as possible.

Guardant Health is creating the cancer-fighting methods of the future, and investors have responded with great enthusiasm. But does the company still have room to grow? Specifically, what is the Guardant Health stock forecast?

Is Guardant Health Stock a Buy?

Since Guardant Health’s IPO in October 2018, its stock price has almost tripled. Those who invested $10,000 in the early days, when shares were available for approximately $19 each, now have stock valued at more than $39,000.

Part of the reason for this impressive jump is attention from other biopharmaceutical companies. Many are working on solutions for cancers with specific genetic markers, and they have enlisted Guardant’s help in collecting the data they need to progress.

In the third quarter of 2019, Guardant Health performed 5,280 cancer genome tests for its biopharma partners – a year over year increase of 111 percent – and the company believes that is just the tip of the iceberg.

Use of such testing is likely to grow in coming months and years as researchers learn more about the behavior of specific cancers.

Guardant Health’s leaders have indicated they are confident about the company’s future. Third quarter 2019 results showed rising revenues, up 181 percent year over year, for a total of $60.9 million.

While Guardant did see a net loss in the third quarter, that number was down to just ($12.8 million), or ($0.14) per share. That represents a substantial improvement over 2018, and more importantly, exceeded analyst expectations.

As a result of the better-than-expected third quarter results, Guardant Health announced positive adjustments to full-year guidance for 2019.

Revenues are projected to come in between $202 million and $207 million, up from the $180 million to $190 million that was previously indicated. Should Guardant Health hit the expected revenue range, year over year growth will total approximately 126 percent.

Guardant Health Stock Forecast Summary

Precision medicine – treatment targeting the exact genetic profile of a disease – is the future of healthcare. Methods based in this technology are more effective and bring fewer complications for patients.

Guardant Health is on the cutting edge of precision medicine, offering tools that make it easier and less expensive to collect a cancer’s genetic information.

Though biotech is generally a risky industry for investors, Guardant Health appears well-positioned to succeed. Its technology has already been proven in many applications, and the applications under review now promise a brand-new approach to cancer diagnosis and treatment. Overall, Guardant Health is a smart buy for today’s investors.

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The author has no position in any of the stocks mentioned. Financhill has a disclosure policy. This post may contain affiliate links or links from our sponsors.