There were a lot of skeptics of medical diagnostics company Exact Sciences (EXAS) before today. The key phrase being “before today.” About 30% of the company’s shares outstanding were sold short.
We witnessed the bull-bear debate play out in real-time today. The bulls are winning. EXAS was up as much as +16% as the company put out strong earnings guidance for 2017 and beat analyst expectations for the quarter.
Why should investors own Exact Sciences here? In the video above, from last week’s institutional call on Exact Sciences, Hedgeye Healthcare analyst Tom Tobin lays out the bull case. He basically argues that the case was further upside is two-fold:
- The potential market share for company’s colon cancer screening test Cologuard is a lot larger than most investors realize
- Wall Street is too bearish and yet doesn’t appreciate the potential upside to sales
That was obviously a good call. We’re sticking with it. Exact Sciences remains a Healthcare top long idea here at Hedgeye.
