Momentum Stock Watch: Neogenomics Inc. (NEO)

Company Profile:

NeoGenomics, Inc. is an operator of a network of cancer-focused genetic testing laboratories. The Company operates in Laboratory Testing Segment. Its Laboratory Testing segment delivers testing services to hospitals, pathologists, oncologists, other clinicians and researchers. The Company offers testing services, which includes Cytogenetics testing, which is the study of normal and abnormal chromosomes and their relationship to disease; fluorescence in-situ hybridization (FISH) testing, which is a branch of cancer genetics that focuses on detecting and locating the presence or absence of specific deoxyribonucleic acid (DNA) sequences and genes on chromosomes; flow cytometry testing, which is a way to measure the characteristics of cell populations, and immunohistochemistry (IHC), and digital imaging, which is a process of localizing proteins in cells of a tissue section and relies on the principle of antibodies binding specifically to antigens in biological tissues. NeoGenomics, Inc. was founded in 2001 and is headquartered in Fort Myers, Florida.

Recent News:

NeoGenomics, Inc. reported consolidated revenue for the second quarter of 2016 was $63.1 million, an increase of 159% over the same period last year. Clinical genetic test volume grew 158% driven by the inclusion of Clarient’s results as well as a 32% year over year increase in base NeoGenomics genetic test volume.

A total of 6 brokerages have released a research note on NeoGenomics, Inc.. Four analysts rate the stock a strong buy, two firms rate the stock a buy. Raymond James Financial Inc. raised the estimated target of NEO to $10, indicating a possible upside of 0.23%.

Fundamental Analysis:

Ninestocks analyzes several different financial aspects: Growth, Profitability, solvency and efficiency.

Growth – Measures the growth of both the company’s income statement and cash flow.

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Profitability – Measures the historical price movement of the stock.

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Solvency – Measures the solvency of the company based on several ratios.

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Efficiency – Measures the strength and historic growth of a company’s return on invested capital.

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Conclusion:

NEO’s strengths can be seen in its strong growth and better efficiency. Its revenue has increased over several years. Technical indicators signal the bullish signs, as there is a bullish cross in MACD and Stochastic Oscillator and RSI is increasing to 50.17. We rate Neogenomics Inc. (NEO) a BUY.