Quick Win by the Algorithm

On June 12th, 2017, the I Know First algorithm issued a bullish forecast for Myriad Genetics, Inc. (NASDAQ:MYGN). MYGN had a signal of 16.98 and a predictability of 0.22. As a result, in accordance with the forecast, the company’s stock had a return of 20.20% within 14 days, showing a quick win by the algorithm.

In 1991, Mark Skolick and Pete Meldrum founded Myriad Genetics, Inc. They did this because of their involvement with the search for a genetic solution to ovarian and breast cancers. Skolick and Meldrum’s work at the University of California, Berkeley with the BRCA1 gene related to breast cancer formed the basis of their future work with Myriad. Today, Myriad Genetics is a molecular diagnostic company. Headquartered in Utah, the company employs proprietary technologies that permit doctors and patients to understand the genetic role in disease. The company uses this information to guide the development of new molecular diagnostic products. It recently announced the acquirement of Assurex Health for up to $410 million in 2016.

It might be surprising that Myriad Genetics experienced such a large increase over this period of time. After all, the company recently reported Q3 2016 financial results that investors found less than impressive. However, there are several reasons this company continues to show impressive returns. Once one looks forward from this recent round of financial results, Myriad is expected to improve. The company expects to report earnings of $0.26 per share for the next quarter. Revenue is expected to be between $206.81 million and $188.4 million.

Myriad offers a few fundamental features that have given it legs in the financial market. Firstly, the company has a strong track record in terms of lab work. The company’s genetic work involves 85,000 base pairs with 100% claimed accuracy. There are 856 possible steps with the work using 23 major technology platforms. Furthermore, this involves 100 proprietary software applications that the company uses to fight cancer.

Secondly, the company has strong historical performance in its particular industry. For example, over the 20+ years of investment in research, Myriad has tested more than 2.5 million patients. This has involved identifying 50,000 variants over this period. Five of Myriad’s proprietary methods have 99.5% validity, an impressive accuracy statistic in today’s industry.

Thirdly, the industry knows Myriad for exceptional customer-company relations. It has more than 40,000 ordering physicians annually. It also has 450 field educators and a lifetime commitment to patients. Hence, one can see how Myriad might be in a position to financially spike when good results come back from testing.

Recently, CEO Mark C. Capone stated, “We were very encouraged to see sequential growth in hereditary cancer testing volumes for the second consecutive quarter […] Coupled with meaningful sequential volume growth in all of our major pipeline tests including GeneSight, Vectra DA, Prolaris, and EndoPredict, we believe we are rapidly approaching an important inflection in our business where our new products will drive accelerated revenue growth and profitability.” Hence, one can see that the company believes it is about to experience even more growth.

This bullish forecast on MYGN was sent to current I Know First subscribers on June 12, 2017. 

Before making any trading decisions, consult the latest forecast as the algorithm constantly updates predictions daily. You can use the algorithm for intra-day trading. The predictability tends to become stronger with forecasts over longer time-horizons such as the 1-month, 3-month and 1-year forecasts.