7. Natera (NASDAQ:NTRA)
Number of Hedge Funds: 68
Top Pick Of: Stanley Druckenmiller — Duquesne Family Office
Natera (NASDAQ:NTRA) is the largest holding of billionaire investor Stanley Druckenmiller. The company develops genetic and molecular diagnostic tests used in oncology, women’s health, and organ health.
Its biggest growth driver is Signatera, a personalized blood test that detects traces of cancer DNA after treatment. The test helps determine whether cancer has returned and is used for recurrence monitoring and treatment decisions. Roughly 50% of U.S. oncologists are already ordering Signatera. Other oncology products include Altera, Latitude, and Empower.
Many bulls believe Signatera could eventually become a standard tool for monitoring cancer patients, creating a large recurring revenue opportunity. Natera’s (NASDAQ:NTRA) momentum has remained strong, with first-quarter revenue rising 38% year over year while test volumes increased 18.5%.
In May, the FDA approved Signatera for use in patients with muscle-invasive bladder cancer, expanding the test’s potential market. Natera (NASDAQ:NTRA) is also pursuing an ambitious expansion plan in Austin, where it is building what management says could become the world’s largest DNA sequencing facility.
While Natera (NASDAQ:NTRA) remains unprofitable and has reported a profit in only one of the past ten quarters, analysts expect Natera to become profitable around 2028. Bulls believe long-term growth will be driven by rising Signatera volumes, broader insurance coverage across more cancer types, and expansion into international markets such as Japan.
Baron Health Care Fund stated the following regarding Natera, Inc. (NASDAQ:NTRA) in its Q1 2026 investor letter:
“We reacquired shares of Natera, Inc. (NASDAQ:NTRA), a diagnostics company that provides testing services in the oncology, prenatal, and organ transplant settings. We are particularly excited about the promise of Natera’s Signatera minimal residual disease (MRD) tests, which account for half of the company’s revenues today and are the company’s key growth driver. Signatera tests for any evidence of cancer cell DNA in a patient’s blood and can be used to: 1) stratify patients and guide therapy decisions after surgical tumor removal; 2) monitor how patients respond to treatment; and 3) detect early cancer recurrence. Signatera is the leading test in the MRD category and has been proven to meaningfully affect patient outcomes in colorectal cancer, breast cancer, bladder cancer, and to monitor immunotherapy response. Natera continues to invest in clinical studies to prove Signatera’s clinical value in additional treatment settings. In particular, we expect Signatera growth to benefit from recently published/presented data in muscle-invasive bladder cancer and head and neck squamous cell carcinoma. We also anticipate Signatera to launch in Japan following reimbursement for colorectal cancer testing, which could drive significant growth in 2027 and beyond given the large patient population. Further, Natera continues to defend its leadership position by expanding its MRD test offerings, including launching their whole genome sequencing-based test and the tumor-naïve Latitude test. Overall, we think MRD testing can be a $20 billion market as oncologists continue to adopt these tests and as its clinical utility is proven in more settings, and we are bullish that Natera will continue to hold its leadership position.”
