Should I Buy Invitae Corporation (NVTA)? Finance YouTuber Analysis

The YouTuber maintains a long-term bullish stance on Invitae, a leader in genetic testing and screening, despite its recent stock decline. He points to the rapidly falling cost of genetic testing, which is expanding the market significantly, and the company's strong earnings beats and updated cancer screening guidelines. Invitae is expected to double revenue to $1 billion annually within three years and is currently trading at a low 0.7 times sales.

“Revenue is expected to double over the next three years to one billion dollars annually and this is as the company improves its profitability as well and converts more of those sales to earnings against that upside growth the stock has plunged from my cost basis of four dollars a share it's now trading for just point seven times sales.”

The YouTuber recommends Invitae, noting its leadership in genetic testing and screening, particularly in oncology, with expanding applications across various health areas. The cost of genetic screening is rapidly decreasing, which is expected to significantly expand the market by making testing accessible to younger age groups. Invitae has shown strong earnings, growing revenue by nearly 17% and improving profitability, with revenue expected to double to $1 billion annually over the next three years. The stock is currently trading at a low valuation of 1.1 times sales, which is considered undervalued for a growth stock.

“innovation has pushed the cost of multi-cancer and other Gene screening down 95 from 2015 to just fifteen hundred dollars today and it's expected to fall another 80 to just 250 dollars by 2025. now that's important because that current fifteen hundred dollar screening cost the purple line here is still only reimbursable for those 60 and older as those costs lower though you get that test down to where people much younger are being reimbursed and they're willing to pay for it at a thousand dollar test we could open up multi-screening cancer to those as young as 40 years old and that being able to test people at a younger age could potentially save more than 60 000 people a year in the us alone and it means a massive increase in the market for screening and testing stocks”

The YouTuber highlights Invitae's leadership in genetic testing, particularly in oncology, and the expanding market opportunity as testing costs decrease. He points to recent strong earnings, revenue growth, and improved profitability, suggesting a 200% return based on a conservative 3x price-to-sales multiple on future revenue.

“even if we get back to a three times multiple closer to the average for those diagnostics companies and on that one billion dollar sales target we get a price target of at least dollars and 15 cents per share or a 200 return in just three years”