12 Best Genomics Stocks To Buy Now
In this piece, we will take a look at the 12 best genomics stocks to buy now. If you want to skip our introduction to the genomics industry and all the latest trends, then take a look at 5 Best Genomics Stocks To Buy Now.
If there's one thing that can be said with certainty it's that the ability to transform materials has contributed significantly to humanity's progress. Whether it's burning wood to generate power, converting water into steam, building jet engines, or manufacturing semiconductors, manipulating matter enables humans to create new products and advance civilization as a whole.
The advent of the coronavirus pandemic introduced a new technology in the public sphere through coronavirus vaccines, The technology, called Messenger Ribonucleic Acid (MRNA), is a specialized variant of RNA - one of the building blocks of the human body. It enables the body to produce antigens that fight viruses and became the latest example of matter manipulation delivering breakthrough results.
Along with RNA, the broader study of manipulating human genes is called genomics. Genes are the code on which a human body is built and they determine features such as height, eye color, and hair fall. Research shows that the global genomics industry was worth $27.58 billion in 2021 and it is expected to grow at a compounded annual growth rate (CAGR) of 18.2% between 2022 and 2026 to be worth $63.5 billion by the end of the forecast period. This growth is expected to be fueled through government spending, as genomics starts to offer hope for treating painfully debilitating and often deadly diseases such as cancer.
Looking at this, you might be wondering what exactly genomics seeks to do. Well, the area primarily concerns itself with components of the human body that are called nucleases. A nuclease is a biological entity that is involved in repairing damage to the human DNA. It is essentially a protein called an enzyme, and genomics primarily works with three nucleases. These are zinc-finger nucleases (ZFN), transcription activator-like effector nucleases (TALEN), and the clustered regularly interspaced short palindromic repeats-associated protein 9 (CRISPR-Cas9). For more details, you can check out the Top 20 Genomics Companies in the World.
Shifting gears to take a look at what's happening in the genomics industry these days, players are making key moves in important areas. For instance, Pleasanton, California-based genomics firm 10x Genomics, Inc. (NASDAQ:TXG) shared in November 2023 that it has teamed up with a global database of genomics research to help discover and develop new treatments for cancers and tumors. 10x Genomics provides companies with products that help with genomic mapping, and its transcriptomics platform will be used for analyzing patient reactions to treatments.
Another firm that made the news recently is Verve Therapeutics, Inc. (NASDAQ:VERV). Verv is based in America's biotechnolgoy hub Massachussetts, and it is developing gene based medicines for heart disorders. The firm announced results from a trial of its gene editing medicine for high cholesterol which showed that a single dose of the drug led to as much as a 55% reduction in cholesterol. However, after the results were announced, Verve's shares tanked by 41% on the market, as investors chose to focus on two heart attacks within the trial patient cohort - one of which ended up being fatal.
Finally, before we head to our list of the best genomics stocks to buy, some recent comments from the management of Illumina, Inc. (NASDAQ:ILMN) are worth noting:
. . .in Q3, Illumina delivered revenue of approximately $1.12 billion, flat year-over-year, or up 1% on a constant currency basis.
This was a disappointing result. The macroeconomic environment remains challenging for our industry and for our customers, with customers increasingly cautious and constrained in their purchasing decisions. Despite a lower gross margin year-over-year, tight management of our operating expenses allowed us to deliver diluted non-GAAP EPS of $0.33, also approximately flat year-over-year. While we cannot control external environment, Illumina’s management team and I remain focused on supporting our customers and our own operational execution. Part of my comprehensive review of the business includes reexamining our strategic initiatives and our targets for long-term revenue growth and operating margins. We will lay out our new targets for you later next year.
With these details in mind, let's take a look at some top genomics stocks, with the notable ones being Illumina, Inc. (NASDAQ:ILMN), Natera, Inc. (NASDAQ:NTRA), and Pacific Biosciences of California, Inc. (NASDAQ:PACB).
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Our Methodology
To make our list of the best genomics stocks to buy, we ranked all companies that directly or indirectly participate in the industry by the number of hedge funds that had bought their shares during Q3 2023. Out of these, the top genomics stocks are as follows.
Best Genomics Stocks To Buy Now
12. Ginkgo Bioworks Holdings, Inc. (NYSE:DNA)
Number of Hedge Fund Investors In Q3 2023: 20
Ginkgo Bioworks Holdings, Inc. (NYSE:DNA) is an American biotechnology company headquartered in Cambridge, Massachusetts. The firm scored a win in November when it teamed up with a dairy company to develop environmentally friendly products.
During Q3 2023, 20 out of the 910 hedge funds part of Insider Monkey's database had held a stake in Ginkgo Bioworks Holdings, Inc. (NYSE:DNA). It joins Natera, Inc. (NASDAQ:NTRA),Illumina, Inc. (NASDAQ:ILMN), and Pacific Biosciences of California, Inc. (NASDAQ:PACB) in our list of the best genomics stocks to buy.
11. Editas Medicine, Inc. (NASDAQ:EDIT)
Number of Hedge Fund Investors In Q3 2023: 21
Editas Medicine, Inc. (NASDAQ:EDIT) is a pure play genomics firm that uses CRISPR to develop treatments for sickle cell disease and cancer. The firm has beaten analyst EPS estimates in three out of its four latest quarters and the stock is rated Buy on average.
After digging through 910 hedge funds for their third quarter of 2023 shareholdings, Insider Monkey found that 21 had invested in the company. David Kroin's Deep Track Capital was Editas Medicine, Inc. (NASDAQ:EDIT)'s biggest shareholder as it owned $55.3 million worth of shares.
10. Krystal Biotech, Inc. (NASDAQ:KRYS)
Number of Hedge Fund Investors In Q3 2023: 22
Krystal Biotech, Inc. (NASDAQ:KRYS) is developing gene based therapies for diseases such as cystic fibrosis. It is one of the best rated stocks on our list, since not only the shares are rated Strong Buy on average but the average share price target of $152 prices in a rough $50 upside.
By the end of this year's September quarter, 22 out of the 910 hedge funds polled by Insider Monkey had bought and owned Krystal Biotech, Inc. (NASDAQ:KRYS)'s shares. Kurt Von Emster's VenBio Select Advisor owned the largest stake which was worth $297 million.
9. CRISPR Therapeutics AG (NASDAQ:CRSP)
Number of Hedge Fund Investors In Q3 2023: 24
CRISPR Therapeutics AG (NASDAQ:CRSP) is one of the best known genomic companies in the world whose CRISPR platform is synonymous with the industry. These days the firm is reorienting its therapeutic portfolio to focus away from cancer to immune system diseases.
Insider Monkey took a look at 910 hedge funds for their third quarter of 2023 shareholdings and found that 24 had invested in the company. CRISPR Therapeutics AG (NASDAQ:CRSP)'s biggest hedge fund investor is Catherine D. Wood's ARK Investment Management as it owns 7.1 million shares that are worth $325 million.
8. Blueprint Medicines Corporation (NASDAQ:BPMC)
Number of Hedge Fund Investors In Q3 2023: 25
Blueprint Medicines Corporation (NASDAQ:BPMC) is developing treatments for cancers of the lung, thyroid, and gastrointestinal system. The firm scored a win in October 2023 when Oppenheimer upgraded its shares to Outperform from Perform.
As of September 2023 end, 25 out of the 910 hedge funds profiled by Insider Monkey had held a stake in Blueprint Medicines Corporation (NASDAQ:BPMC). Kris Jenner, Gordon Bussard, Graham Mcphail's Rock Springs Capital Management was the largest shareholder due to its $134 million stake.
7. uniQure N.V. (NASDAQ:QURE)
Number of Hedge Fund Investors In Q3 2023: 26
uniQure N.V. (NASDAQ:QURE) is a Dutch gene therapy company focusing on treatments for sclerosis, Huntington's disease, epilepsy, and other ailments. It's another highly rated genomics stock, having garnered an average share rating of Strong Buy and an average share price target of $32.08.
After digging through 910 hedge fund portfolios for this year's third quarter, Insider Monkey found that 26 had bought and owned the firm's shares. uniQure N.V. (NASDAQ:QURE)'s biggest hedge fund investor is Wilmot B. Harkey and Daniel Mack's Nantahala Capital Management due to its $20.2 million investment.
6. 10x Genomics, Inc. (NASDAQ:TXG)
Number of Hedge Fund Investors In Q3 2023: 26
10x Genomics, Inc. (NASDAQ:TXG) is an American biotechnology company that sells equipment to the genomics industry. The firm hasn't been doing well on the financial front as of late since it has missed analyst EPS estimates in three out of its four latest quarters.
26 out of the 910 hedge funds part of Insider Monkey's Q3 2023 database had invested in 10x Genomics, Inc. (NASDAQ:TXG). Catherine D. Wood's ARK Investment Management owned a $123 million stake which made it the firm's largest shareholder.
Illumina, Inc. (NASDAQ:ILMN), Natera, Inc. (NASDAQ:NTRA), 10x Genomics, Inc. (NASDAQ:TXG), and Pacific Biosciences of California, Inc. (NASDAQ:PACB) are some top genomics stocks with hedge fund interest.
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Disclosure: None. 12 Best Genomics Stocks To Buy Now is originally published on Insider Monkey.
