Takeaway: We are adding EXAS to the long side today.

Below is a note from Hedgeye CEO Keith McCullough on why we're adding Exact Sciences (EXAS) to the long side of Investing Ideas today:

"There's always a sale somewhere!

Let's hope we get more sales in names my analysts like (to the low-end of their respective risk ranges). Exact Sciences (EXAS) is -2.7% here on no volume.

There were a lot of skeptics on this company pre the most recent rip. About 30% of the company’s shares outstanding were sold short.

We witnessed the bull-bear debate play out in real-time. The bulls are winning. EXAS was up as much as +16% (in a day) recently 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 our @HedgeyeTV video, Hedgeye Healthcare analyst Tom Tobin lays out the bull case. He basically argues that the case for further upside is two-fold:

  1. The potential market share for the company’s colon cancer screening test Cologuard is a lot larger than most investors realize
  2. Wall Street is too bearish and doesn’t yet appreciate the potential upside to sales"

EXAS: Adding Exact Sciences to Investing Ideas (LONG SIDE) - exact sciences