Should You Continue to Hold EXAS Stock in Your Portfolio Now?

Exact Sciences Corporation EXAS is well-poised to grow in the coming quarters, courtesy of its continuous investment in R&D efforts. In addition, EXAS’ commercial capabilities are driving stronger Cologuard adoption, narrowing the screening gap. Yet, the fierce competitive landscape and macroeconomic challenges pose operational risks.

Over the past year, this Zacks Rank #3 (Hold) stock has plunged 81.3% compared to the 19.1% growth of the industry. Meanwhile, the S&P 500 composite has risen 19.5% in the same time frame.

The renowned global medical device company has a market capitalization of $19.34 billion. EXAS has an estimated long-term earnings growth rate of 30.3% compared with the industry’s 22.1% growth. Its earnings surpassed estimates in each of the trailing four quarters, the average surprise being 352.3%.

Let’s delve deeper.

Tailwinds for Exact Sciences

Enhancing Customer Experience: Exact Sciences plans to transform cancer care by providing patients with valuable insights at every step of their diagnosis and treatment. The company is currently working to build the best digital infrastructure and diagnostics. This vision has two main elements: first, empowering patients to take a more proactive role in their care; and second, making it easier for physicians to order tests, interpret results, and personalize treatment by applying real-world evidence and clinical guideline recommendations.

The strength of EXAS’ commercial capabilities is driving higher patient adherence to Cologuard testing every three years, supporting the company’s goal of making screening a routine practice and closing the screening gap.

Advancing New Solutions: Exact Sciences continues to invest in its pipeline to develop innovative solutions for every stage of cancer diagnosis. In the third quarter, the company launched Cancerguard — the first multi-cancer early detection (MCED) test as a laboratory-developed test (LDT) in the United States.  

In the previous quarter, the company launched the Oncodetect molecular residual disease (MRD) test as a laboratory-developed test (LDT), enhancing the ability to detect cancer recurrence and support timely, personalized treatment decisions. In late March 2025, it also launched Cologuard Plus, which is covered by Medicare and included in the U.S. Preventive Services Task Force (USPSTF) guidelines as a recommended stool-based screening option.

Concerns for Exact Sciences

Escalating Costs: Exact Sciences’ business has been affected by global macroeconomic conditions. Additionally, the high-interest-rate environment and limited access to capital markets could strain the company’s suppliers, distributors, and key business partners, making it difficult for them to remain viable. 

All these are creating significant pressure on its profitability as well. In the third quarter of 2025, the cost of revenues (excluding the amortization of acquired intangibles) rose 22.8%. Sales and marketing expenses surged 13.6% year over year.

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Tough Competitive Landscape: Given the large colorectal cancer screening market, Exact Sciences faces numerous competitors, some with significantly greater financial resources and development capabilities. Under such intense competitive pressure, the company could face challenges to growth and profitability if it is unable to compete effectively, which could adversely impact its stock price.

EXAS Stock Estimate Trend

In the past 30 days, the Zacks Consensus Estimate for Exact Sciences’ 2025 earnings has remained unchanged at 27 cents.

The Zacks Consensus Estimate for 2025 revenues is pegged at $3.23 billion, implying a 17.1% jump from the 2024 reported number.

Key Picks

Some better-ranked stocks in the broader medical space are BrightSpring Health Services BTSG, lllumina ILMN and Insulet PODD.

BrightSpring Health Services has an estimated long-term earnings growth rate of 53.3% compared with the industry’s 15.5% growth. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 45.1%. BTSG shares have surged 93.9% against the industry’s 0.1% decline over the past year.

BTSG sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Illumina, currently sporting a Zacks Rank #1, has an earnings yield of 3.7% compared to the industry’s -7.9% yield. Shares of the company have lost 10.8% over the past year against the industry’s 9.9% growth. ILMN’s earnings outpaced estimates in three of the trailing four quarters and missed on one occasion, the average surprise being 6.7%.

Insulet, currently carrying a Zacks Rank #2 (Buy), has an earnings yield of 3.9% against the industry’s -0.9% yield. Shares of the company have lost 7.8% compared with the industry’s 2.6% decline. PODD’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 17.8%.

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This article originally published on Zacks Investment Research (zacks.com).

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