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