Guardant Health is Tuesday's pick for IBD 50 Growth Stocks To Watch as the medical industry player made another attempt at breaking out of a base. The company is a leader in colon cancer screening, using an alternative to a colonoscopy.
Guardant Health ranks No. 34 on the IBD 50 and was Monday's IBD Stock Of The Day. Shares are trading around a buy zone.
Guardant Health develops blood tests that screen to identify early stages of cancer, assess response to treatment and detect signs of the remaining disease. It currently has three products: Shield, Guardant360 Liquid and Guardant Infinity.
The American Cancer Society estimates that nearly 53,000 Americans will die from colorectal cancer and over 154,000 new cases will be found in 2025.
Guardant Health developed a blood test to detect colon cancer beyond a colonoscopy with oral solution preparation or a stool sample test. Guardant's blood test that screens for colon cancer is called Shield and has been approved by the Food and Drug Administration.
Its Guardant360 Liquid product gives insights for a more personalized cancer treatment and monitor tumor evolution. Lastly, its Guardant Infinity platform performs genomic profiling.
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Guardant Health Stock Teases Around Buy Range
Guardant Health stock first broke out of the third stage cup base with a 68 buy point on Thursday but the breakout faded. The stock got reinvigorated and jumped 7.2% Monday in average volume and broke out of the cup base once again.
Shares hit a 52-week high Tuesday morning before giving back around 3% of gains and wavering around the buy point Tuesday afternoon, according to MarketSurge chart analysis. The stock is back above its 10-week moving average after several tests of the line since mid-September.
Further, the stock has outperformed 96% of stocks that Investor's Business Daily tracks and has surged 126% so far this year.
Mutual funds own 75% of shares with management holding a 6% stake in the company. Five IBD Mutual Fund Index names own stock, including the largest position by Invesco Discovery Fund (OPOCX) with 1.18 million shares in September.
Its IBD Accumulation/Distribution Rating of B- indicates more institutional buying than selling over the last 13 weeks. And its 1.4 up/down volume ratio shows positive demand for the Guardant stock over the last 50 days.
Colon Cancer Screener Sees Growing Sales
The company is not yet profitable and reported a second-quarter loss of 44 cents per share on July 30. It saw revenue of $232.1 million, or 31% growth.
Guardant Health also raised its full-year 2025 revenue forecast to a range of $915 million to $925 million, or growth of 24% to 25%, in the financial release. This compares with its prior outlook for a range of $880 million to $890 million.
The company has a three-year sales growth rate of 27%, according to IBD Stock Checkup.
Analysts expect a loss of $3.12 per share in full-year 2025, then improve to $2.74 in 2026. Guardant is expected to report its third-quarter financial results Oct. 29.
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