Shares of NeoGenomics (NEO) have been strong performers lately, with the stock up 22.3% over the past month. The stock hit a new 52-week high of $17.08 in the previous session. NeoGenomics has gained 44.4% since the start of the year compared to the 6.6% gain for the Zacks Medical sector and the 11.3% return for the Zacks Medical - Biomedical and Genetics industry.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on July 28, 2026, NeoGenomics reported EPS of $0.05 versus consensus estimate of $0.03.
For the current fiscal year, NeoGenomics is expected to post earnings of $0.18 per share on $802.67 in revenues. This represents a 50% change in EPS on a 10.36% change in revenues. For the next fiscal year, the company is expected to earn $0.34 per share on $882.33 in revenues. This represents a year-over-year change of 90.74% and 9.93%, respectively.
Valuation Metrics
Though NeoGenomics has recently hit a 52-week high, what is next for NeoGenomics? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). The individual style scores for Value, Growth, Momentum and the combined VGM Score run from A through F. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.
NeoGenomics has a Value Score of D. The stock's Growth and Momentum Scores are A and D, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 94.3X current fiscal year EPS estimates, which is a premium to the peer industry average of 23.4X. On a trailing cash flow basis, the stock currently trades at 50.7X versus its peer group's average of 15X. Additionally, the stock has a PEG ratio of 1.86. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to consider the stock's Zacks Rank, as this is even more important than the company's VGM Score. Fortunately, NeoGenomics currently has a Zacks Rank of #2 (Buy) thanks to favorable earnings estimate revisions from covering analysts.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if NeoGenomics passes the test. Thus, it seems as though NeoGenomics shares could have potential in the weeks and months to come.
How Does NEO Stack Up to the Competition?
Shares of NEO have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Halozyme Therapeutics, Inc. (HALO). HALO has a Zacks Rank of #2 (Buy) and a Value Score of B, a Growth Score of A, and a Momentum Score of D.
Earnings were strong last quarter. Halozyme Therapeutics, Inc. beat our consensus estimate by 25.27%, and for the current fiscal year, HALO is expected to post earnings of $8.19 per share on revenue of $1.82 billion.
Shares of Halozyme Therapeutics, Inc. have gained 32% over the past month, and currently trade at a forward P/E of 13.2X and a P/CF of 22.67X.
The Medical - Biomedical and Genetics industry may rank in the bottom 60% of all the industries we have in our universe, but there still looks like there are some nice tailwinds for NEO and HALO, even beyond their own solid fundamental situation.
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This article originally published on Zacks Investment Research (zacks.com).