Nearly every stock in the GenomeWeb Index gained ground in June, with Pacific Biosciences of California Inc. (PACB, Financial) topping the list with a 29% increase in its share price. Hot on PacBio’s heels were Fulgent Genetics Inc. (FLGT, Financial) and Twist Bioscience Corp. (TWST, Financial) with advances of 25% and 24%.
All but three outliers among the 36 stocks being measured recorded gains last month.
Even the companies dragging down the group didn’t do too badly. Genetron Holdings Ltd. (GTH, Financial) only lost 5%, followed by dips in the price of Qiagen N.V. (QGEN, Financial) (-2%) and Luminex Corp. (LMNX, Financial) (-0.2%), reported GenomeWeb.
The index’s overall gain of 9% bested the Dow Jones Industrial Average (DJIA), which was flat, the Nasdaq (IXIC), up 6%, and the Nasdaq Biotechnology Index (IBB), up 8%. The increase broke a streak of consecutive losses in April and May.
Genomics is the study of all of a person's genes (the genome), including interactions of those genes with each other and with the person's environment. Genome-based research is aimed at enabling medical researchers to develop improved diagnostics, more effective therapeutic strategies, evidence-based approaches for demonstrating clinical efficacy and better decision-making tools for patients and providers, according to the National Human Genome Research Institute. Grandview Research reports the global genomics market is expected to reach $62.9 billion by 2028, growing at a compound annual rate of 15.35% from 2021 to 2028.
PacBio probably benefited from an announcement late last month that it’s working with the Rady Children's Institute for Genomic Medicine on a study to diagnose rare diseases. Rady joins other PacBio partners like Children's Mercy of Kansas City, Microsoft Corp. (MSFT, Financial) and Invitae Corp. (NVTA, Financial).
Year to date, PacBio stock is up about $7 to about $32.60, although it has traded as high as $53.69. CNN Money reports the five analysts offering 12-month prices assigned it a median target of $48, with a high estimate of $62 and a low of $30. They peg the stock as a buy.
Fulgent's stock may have been sent higher due to a carryover of good news from May, when the company reported first-quarter sales were up big, thanks in great part to demand for its Covid-19 testing services. The company has also made several moves to plant a foothold in China for its genetic testing services. The stock has experienced some wild swings in the past year. Its 52-week range is $16.50 to $189.89; today it sits at just over $89.
Meanwhile, Genetron’s drop in value could be attributed to continued disappointment that its first-quarter earnings fell short of what analysts expected. The company’s shares are still up since the beginning of the year, but at $18.55 are still off its year-to-date high of more than $31.
Following is the complete list of companies in the index:
