GeneDx Holdings Corp. (NASDAQ:WGS) has emerged as one of the top digital health stocks to invest in currently. Guggenheim recently raised GeneDx’s price target to $170 after the company’s exceptional Q3 results were announced. With revenue reaching $116.7 million, a 52% increase year over year, GeneDx exceeded expectations, with exome and genome revenue hitting $98.9 million, a 65% increase. Test volumes for exome/genome also saw a significant rise of 33%. The company’s gross profitability improved as well, with adjusted gross margin reaching 74% and adjusted net income climbing to $14.7 million.
Guggenheim’s positive outlook is based on the continued growth in exome and genome volumes, higher average selling prices, and an upward trend in gross margin. GeneDx’s management has raised its full-year guidance for 2025 to $425–$428 million in revenue with 53–55% growth in exome/genome revenue, along with a 70–71% adjusted gross-margin projection.
Addressing concerns about increased spending in 2026, Guggenheim sees it as an investment in the company’s proven scale curve in pediatric and rare-disease genomics, rather than a return to negative earnings per share. GeneDx Holdings Corp. specializes in genomic testing, particularly in whole-exome and whole-genome sequencing for pediatric and rare disorders. Additionally, the company provides data solutions that support clinical decision-making and precision medicine.
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In conclusion, GeneDx Holdings Corp. continues to make strides in the digital health sector, positioning itself as a top contender for investors. With a focus on genomic testing and innovative solutions, the company is poised for further growth and success in the future.
