NeoGenomics Inc (NEO, Financial), a player in the Medical Diagnostics & Research industry, has experienced a notable fluctuation in its stock price recently. With a current market capitalization of $2.2 billion, the company's shares are trading at $17.26. Over the past week, NeoGenomics has seen a 9.76% gain in its stock price, which is a significant uptick for investors. However, looking at a broader time frame, the stock has suffered a 14.37% loss over the past three months. This volatility in stock price is a critical point of interest for value investors.
Valuation Insights
According to the GF Value, which is a measure of a stock's intrinsic value, NeoGenomics is currently modestly undervalued with a GF Value of $19.34. This is a stark contrast to the past GF Value of $36.85, indicating that the stock was previously considered a possible value trap, suggesting investors should think twice before investing. The current GF Valuation presents a more favorable scenario for potential investors, as the stock is now seen as having room to grow to reach its intrinsic value.
Introduction to NeoGenomics Inc
NeoGenomics Inc operates a network of cancer-focused genetic testing laboratories in the United States and Switzerland. The company's operations are divided into two segments: Clinical Services and Pharma Services. It offers a variety of genetic and molecular testing services, including Cytogenetics, Fluorescence In-Situ Hybridization, Flow cytometry, Immunohistochemistry, Molecular testing, and Pathology consultation. The majority of the company's revenue is generated from Clinical Services. 
Assessing Profitability
NeoGenomics' Profitability Rank stands at 5/10, which is a moderate score reflecting its financial health and market position. The company's Operating Margin is currently at -17.60%, which, while negative, is better than 41.67% of the companies in the industry. The ROE (Return on Equity) is -9.85%, ROA (Return on Assets) is -5.61%, and ROIC (Return on Invested Capital) is -7.22%, all of which are better than nearly half of the companies within the industry. Over the past decade, NeoGenomics has been profitable for five years, which is a reasonable track record in a competitive sector. 
Growth Prospects
The company's Growth Rank is 3/10, indicating a lower growth trajectory compared to peers. NeoGenomics has a 3-Year Revenue Growth Rate per Share of 1.30% and a 5-Year Revenue Growth Rate per Share of 7.10%. These figures suggest that while the company is growing, it is doing so at a slower pace than some of its competitors. 
Investor Holdings
Notable investors have taken an interest in NeoGenomics. Chuck Royce (Trades, Portfolio) holds 596,742 shares, representing a 0.47% share percentage. Paul Tudor Jones (Trades, Portfolio) has a stake of 165,391 shares, which is 0.13% of the company, and Ray Dalio (Trades, Portfolio) owns 148,346 shares, equating to a 0.12% share percentage. These holdings by prominent investors signal confidence in the company's potential and stability.
Competitive Landscape
When compared to its competitors, NeoGenomics holds its ground with a market cap of $2.2 billion. RadNet Inc (RDNT, Financial) has a slightly lower market cap of $2.13 billion, Myriad Genetics Inc (MYGN, Financial) is valued at $1.51 billion, and OPKO Health Inc (OPK, Financial) stands at $1.06 billion. These figures place NeoGenomics in a strong position within the industry, suggesting it has the potential to leverage its market cap for future growth and expansion.
Conclusion
In summary, NeoGenomics Inc's recent stock performance has been a mixed bag, with a significant gain over the past week but a loss over the past three months. The company's current valuation indicates it is modestly undervalued, presenting a potentially attractive opportunity for investors. While profitability metrics show some challenges, they are relatively strong within the industry context. Growth rates are modest, and the presence of notable investors adds a layer of credibility to the company's prospects. Finally, NeoGenomics maintains a competitive stance in the market when compared to its peers, which could bode well for its future endeavors.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
