Myriad Genetics, Inc. MYGN sits at the center of a classic value-versus-execution debate. The stock is currently valued at about 0.4x forward 12-month sales, well below the levels cited for the Zacks sub-industry, the Zacks sector and the S&P 500.
Myriad Genetics trades near 0.4x sales as investors weigh cheap valuation against 2026 launch execution and uneven segment performance.
Myriad Genetics, Inc. MYGN sits at the center of a classic value-versus-execution debate. The stock is currently valued at about 0.4x forward 12-month sales, well below the levels cited for the Zacks sub-industry, the Zacks sector and the S&P 500.
Image Source: Zacks Investment Research
The discounted valuation follows the stock’s 36% year-to-date decline.
Image Source: Zacks Investment Research
That gap can look compelling, but the next phase depends on whether the company can turn its 2026 launch cadence into steadier growth and improving profitability.
The valuation framework uses the same forward sales multiple to anchor expectations. The price target is tied to 0.4x forward 12-month sales, matching where the stock trades today. For upside to develop, Myriad Genetics’ 2026 plan needs to translate into measurable commercial progress. The company is investing in commercial execution and research and development, including expanding its sales organization by more than 100 account executives to support multiple launches in 2026 and longer-term profitable growth.
Execution, in this setup, is not abstract. It is defined by the ability to ramp new offerings while keeping demand stable in core oncology testing and rebuilding momentum in areas that have been pressured.
In the first quarter of 2026, revenue increased modestly year over year to $200.4 million, while total testing volumes were stable. Operationally, Cancer Care Continuum volumes rose 13% year over year, supporting the revenue growth even as other categories offset part of the benefit. Myriad Genetics posted an adjusted loss of 9 cents per share, wider than the prior-year quarter’s adjusted loss of 3 cents per share, and missed the consensus estimate.
Profitability is expected to improve as 2026 progresses. The company reaffirmed full-year guidance that implies better second-half performance, with second-half revenues expected to exceed first-half levels.
Oncology-oriented categories are doing more of the heavy lifting. In the first quarter, the Cancer Care Continuum business delivered $120.2 million of revenue, up 4% year over year. Within that, hereditary cancer testing revenue increased 5%, driven by a 14% increase in volume, and Prolaris testing revenue grew 3%.
Myriad Genetics is also pushing further into oncology innovation. Precise minimal residual disease began a limited launch in March 2026 for a select set of breast cancer customers, with early customer feedback described as positive. MyChoice CDx received United States Food and Drug Administration approval as a companion diagnostic for Zejula in advanced ovarian cancer.
By contrast, Prenatal Health remains a near-term drag. First-quarter Prenatal Health revenue declined 15% year over year to $41.9 million, alongside a 12% volume decline, as the business works through customer engagement and disruption tied to the 2025 second-quarter implementation of a new order management system. The company is preparing FirstGene for a full commercial launch in the second half of 2026, with results delivered within 14 days.
MYGN carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
The stock also screens well on growth characteristics within the Style Score framework, with a Growth Score of A and a VGM Score of A, alongside a Momentum Score of B and a Value Score of C.
In the same industry landscape, peers such as ACADIA Pharmaceuticals Inc. ACAD and Halozyme Therapeutics, Inc. HALO are listed among industry comparables, highlighting that investors have alternatives within the Medical - Biomedical and Genetics group when building exposure.
While GeneSight volumes rose year over year in the first quarter and revenue increased on improved reimbursement trends, payor policy shifts can quickly change access, pricing and cash flow. Rival tests can be priced aggressively, and the competitive set is expanding in minimal residual disease as community oncology workflows and payer expectations take shape.
Execution risk rises with the 2026 launch cadence and higher commercial investment. If adoption develops more slowly than anticipated, the return on commercial and evidence investments can extend. Margin variability is also a risk, with management expecting quarter-to-quarter fluctuation based on mix and pricing trends.
The upside case is straightforward — successful 2026 launches, continued demand in hereditary cancer and tumor profiling, and a second-half acceleration that delivers the profitability improvement implied by the full-year outlook.
The downside case is equally clear — tighter coverage for GeneSight, slower adoption in minimal residual disease, and a weaker-than-expected prenatal recovery that prevents the business from regaining traction in the second half.
At 0.4x forward 12-month sales, the valuation leaves room for better execution to matter. But the path depends on whether Myriad Genetics can convert its product momentum into steadier growth and improving economics as 2026 unfolds.
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X $TWTR Imaging which shot up +129.6% in little more than 9 months.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Join 500,000+ readers who start their day with Quartz.
By subscribing, you agree to our Terms of Service and Privacy Policy.