Is EXACT Sciences Corp (EXAS) a Smart Long-term Buy?

RiverPark Advisors, LLC recently published its Q3 2020 RiverPark Large Growth Fund commentary – a copy of which can be downloaded here. During the third quarter of 2020, the RiverPark Large Growth Fund returned 10.84% (institutional shares), compared to the total return of 8.93% by the S&P 500 Index. You should check out RiverPark’s top 5 stock picks for investors to buy right now, which could be the biggest winners of 2021.

In the Q3 2020 Investor Letter, RiverPark highlighted a few stocks and Exact Sciences Corp (NASDAQ:EXAS) is one of them. Exact Sciences Corp (NASDAQ:EXAS) is a molecular diagnostics company with an initial focus on the early detection and prevention of colorectal cancer. Year-to-date, Exact Sciences Corp (NASDAQ:EXAS) stock gained 44.4% and on December 8th it had a closing price of $133.53. Here is what RiverPark said:

“Exact Sciences: EXAS shares were our next top contributor for the quarter, as management disclosed for the first time significant and compelling data for its multi-cancer liquid biopsy screening test. The test for six different cancer types from its decade-long collaboration with the Mayo Clinic showed high overall cancer detection sensitivity of 86%, with 95% specificity (only a 5% false-positive rate).

Up until management’s liquid biopsy announcement, investors had been focused solely on the company’s long-term growth prospects of its Cologuard franchise in the $18 billion annual colon cancer screening market and the company’s November 2019 acquisition of Genomic Health with its precision oncology tests and pipeline, primarily for breast cancer. The announcement highlights a third leg of growth in the emerging multi-cancer liquid biopsy market in which the company can be a major competitor.”


In Q2 2020, the number of bullish hedge fund positions on Exact Sciences Corp (NASDAQ:EXAS) stock increased by about 26% from the previous quarter (see the chart here), so a number of other hedge fund managers believe in EXAS’s growth potential. Our calculations showed that Exact Sciences Corp (NASDAQ:EXAS) isn’t ranked among the 30 most popular stocks among hedge funds.

The top 10 stocks among hedge funds returned 216% since the end of 2014 and outperformed the S&P 500 Index ETFs by more than 121 percentage points. We know it sounds unbelievable. You have been dismissing our articles about top hedge fund stocks mostly because you were fed biased information by other media outlets about hedge funds’ poor performance. You could have doubled the size of your nest egg by investing in the top hedge fund stocks instead of dumb S&P 500 ETFs. Below you can watch our video about the top 5 hedge fund stocks right now. All of these stocks had positive returns in 2020.

Video: Top 5 Stocks Among Hedge Funds

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