Does Natera (NTRA) Have a Long Runway For Growth?

ClearBridge Investments, an investment management company, released its “ClearBridge Growth Strategy” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. US equities significantly rallied in the third quarter, with the S&P 500 returning 8.1%. The benchmark Russell Midcap Growth Index surged 2.8%. The investor optimism was driven by better-than-feared tariff outcomes, the passing of the One Big Beautiful Bill Act in July, anticipated interest rate cuts, and better corporate earnings. The strategy outperformed the benchmark in the quarter, driven by momentum in the AI-focused investments, while also having exposure to various other thematic bets. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its third-quarter 2025 investor letter, ClearBridge Growth Strategy highlighted stocks such as Natera, Inc. (NASDAQ:NTRA). Natera, Inc. (NASDAQ:NTRA) is an optical communications, display technologies, environmental technologies, specialty materials, and life sciences business company. The one-month return of Natera, Inc. (NASDAQ:NTRA) was 10.45%, and its shares gained 37.39% of their value over the last 52 weeks. On November 13, 2025, Natera, Inc. (NASDAQ:NTRA) stock closed at $200.67 per share, with a market capitalization of $27.695 billion.

ClearBridge Growth Strategy stated the following regarding Natera, Inc. (NASDAQ:NTRA) in its third quarter 2025 investor letter:

Natera, Inc. (NASDAQ:NTRA), in the health care sector, is a molecular diagnostics company that specializes in cell-free DNA testing across oncology, women’s health and organ health. We believe Natera has a long runway for growth as adoption of minimal residual disease (MRD) testing, a nascent post-cancer treatment area, increases. The company has multiple opportunities to broaden its MRD portfolio and extend its reach globally. While Natera is investing heavily in oncology today, its core women’s health business is currently profitable, allowing the company to be self-funded.”

Natera, Inc. (NTRA): Among Stocks with Buy Ratings that Hedge Funds Love

Natera, Inc. (NASDAQ:NTRA) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 66 hedge fund portfolios held Natera, Inc. (NASDAQ:NTRA) at the end of the second quarter, compared to 67 in the previous quarter. In Q3 2025, Natera, Inc. (NASDAQ:NTRA) generated $592 million in revenue, which is up about 35% compared to Q3 2024. While we acknowledge the risk and potential of Natera, Inc. (NASDAQ:NTRA) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than Natera, Inc. (NASDAQ:NTRA) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered Natera, Inc. (NASDAQ:NTRA) and shared the list of best growth stocks to buy. In addition, please check out our hedge fund investor letters Q3 2025 page for more investor letters from hedge funds and other leading investors.

READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money.

Disclosure: None. This article is originally published at Insider Monkey.