Investing in small-cap healthcare companies is frequently a frustratingly inconsistent proposition. As often as not, you’re dealing with companies that defy analysis through conventional means. No revenue, no profits, no assets to speak of beyond intellectual property that may or may not be revealed to be utterly worthless by a clinical trial currently under way; all together, it takes a lot of nerve and patience.
However, the sector is also filled with a number of other companies that aren’t simply waiting on the FDA to determine whether or not they are wildly overvalued or wildly undervalued. In fact, if you can get away from the high-stakes game of biotech investing, there are a lot of options for companies with proven technology and a more predictable future.
The Equities.com Research Team took a look at such a company when it delved into the work of Neogenomics (NEO) . Neogenomics is primarily engaged in the business of medical testing including cytogenetics, the study of how abnormal and normal chromosomes can affect disease.
This sort of genetic testing is precisely the sort of healthcare spending that looks to be on the upswing in the coming decade as industry reforms give way to smarter spending and better data. And Neogenomics is already showing signs of that rapid growth, posting a 26% year-over-year increase in revenues in the first quarter on a 28% increase in testing volume.
If Neogenomics is currently existing on the edge of an upward trend in the use of its product, which could mean it’s got a lot of room for further growth. And, as the Equities.com Research Team found in its report, the company’s financials and risk profile would appear to offer more reason for optimism. Read the research report here and decide for yourself whether or not Neogenomics is an ideal play on a shifting focus in the healthcare industry.
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