Shares of oncology (cancer) diagnostics company NeoGenomics (NASDAQ:NEO)
fell 20.2% in the morning session after the company reported second-quarter results that included a significant cut to its full-year financial guidance, sparking a selloff.
Oncology (cancer) diagnostics company NeoGenomics (NASDAQ:NEO) missed Wall Street’s revenue expectations in Q2 CY2025, but sales rose 10.2% year on year to $181.3 million. The company’s full-year revenue guidance of $723 million at the midpoint came in 2.9% below analysts’ estimates. Its non-GAAP profit of $0.03 per share was in line with analysts’ consensus estimates.
The stocks in this article have caught Wall Street’s attention in a big way, with price targets implying returns above 20%.
But investors should take these forecasts with a grain of salt because analysts typically say nice things about companies so their firms can win business in other product lines like M&A advisory.
A number of healthcare stocks fell in the afternoon session after several negative developments weighed on the sector. Weakness in managed care providers was a significant factor, with companies like Elevance Health and Humana seeing declines due to an analyst downgrade and a lost lawsuit regarding Medicare bonus payments, respectively.
Stocks trading in the $1-10 range are generally smaller players with less risk than their penny stock counterparts.
But that doesn’t mean the underlying businesses are cheap, and we advise caution as many have questionable fundamentals.
As the Q1 earnings season wraps, let’s dig into this quarter’s best and worst performers in the testing & diagnostics services industry, including NeoGenomics (NASDAQ:NEO) and its peers.
A number of stocks fell in the afternoon session after the U.S. administration announced a sharp escalation in trade tensions by threatening new tariffs on Canada.
The Russell 2000 (^RUT) is home to many small-cap stocks, offering investors the chance to uncover hidden gems before the broader market catches on.
However, these companies often come with higher volatility and risk, as their smaller size makes them more vulnerable to economic downturns.
While some companies burn cash to fuel expansion, others struggle to turn spending into sustainable growth.
A high cash burn rate without a strong balance sheet can leave investors exposed to significant downside.
Market swings can be tough to stomach, and volatile stocks often experience exaggerated moves in both directions.
While many thrive during risk-on environments, many also struggle to maintain investor confidence when the ride gets bumpy.
A number of stocks fell in the afternoon session after the major pulled back (Nasdaq -1.3%, S&P 500 - 1.4%) as Treasury yields rose, reflecting market anxiety over a draft federal budget that could worsen the already wide US fiscal deficit.
Healthcare companies are pushing the status quo by innovating in areas like drug development and digital health. But speed bumps such as inventory destockings have persisted in the wake of COVID-19,
and over the past six months, the industry has pulled back by 6.4%. This drawdown was disappointing since the S&P 500 stood firm.
The Russell 2000 (^RUT) is packed with potential breakout stocks, thanks to its focus on smaller companies with high growth potential.
However, smaller size also means these businesses often lack the resilience and financial flexibility of large-cap firms, making careful selection crucial.
Oncology (cancer) diagnostics company NeoGenomics (NASDAQ:NEO) fell short of the market’s revenue expectations in Q1 CY2025, but sales rose 7.5% year on year to $168 million. On the other hand, the company’s full-year revenue guidance of $753 million at the midpoint came in 2% above analysts’ estimates. Its non-GAAP loss of $0 per share was in line with analysts’ consensus estimates.
