FLGT continues to be a buyBought this back in May and keep adding to it, overall I'm up over 35%, I continue to add to it based on all the recommendations I've been reviewing, here's one from Motley Fool.
Fulgent Genetics is a high flyer that's underpriced
Fulgent Genetics, based in Temple City, California, does genetic diagnostic sequencing using the DNA taken from blood to diagnose certain diseases and for neonatal and prenatal screening. The company's tests are also used to determine if patients have COVID-19. Fulgent's stock has climbed more than 260% in the past year because of its top and bottom-line growth.
In 2019, the company had $32.5 million in revenue. This year, the company said it expects to make at least $300 million in revenue because of accelerated demand for its COVID-19 tests. Through three quarters, the company reported $126.7 million in revenue, compared to $24.1 year over year. Its net income, through three quarters, is listed at $48 million, compared to a loss of $1.1 million in the same period in 2019.
The company's shares trade at only nine times expected earnings. Compared to most growth stocks, that's a bargain. Even with vaccine candidates on the way for COVID-19, the need for Fulgent's COVID-19 tests will continue for a while. On top of that, the market for genetic diagnostic testing is expected to grow. According to a report by Grandview Research, the global DNA sequencing market size was valued at $4.7 billion in 2019 and has a likely compound annual growth rate of 11.4% through 2027.