GeneDx (WGS): Valuation Insights After Strong Q3, Raised Guidance, and New Genomics Advances

GeneDx Holdings (WGS) is in the spotlight after a promising Q3, with revenue climbing sharply and management boosting full-year 2025 guidance for both revenue and margins. The company is also showcasing research updates at the National Society of Genetic Counselors Annual Meeting, which is adding to the conversation around its stock.

See our latest analysis for GeneDx Holdings.

Momentum has been building for GeneDx Holdings, with upbeat Q3 results and a wave of innovation updates fueling optimism. This is reflected in a year-to-date share price return of 59.4% and an impressive 1-year total shareholder return of nearly 83%. Investors seem to be responding positively to the company’s aggressive push in rare disease genomics and pioneering data initiatives, as well as a raised 2025 outlook. All of these factors are helping to reinforce confidence in the long-term growth story.

If GeneDx’s progress in genomics caught your attention, you might want to see which other healthcare innovators are making waves—See the full list for free.

With shares outperforming the broader market and analysts lifting their targets, the big question now is whether GeneDx stock still offers room for upside or if its surge has already factored in the next stage of growth.

Most Popular Narrative: 18.8% Undervalued

GeneDx Holdings closed at $126.92, while the narrative’s fair value places it at $156.22. This gap highlights analysts’ belief in further upside, based on aggressive long-term assumptions and high expectations for future growth.

Deepening partnerships with biopharma companies (leveraging data for drug discovery and clinical trial services) and the ramp-up of a global commercial strategy (including international expansion via Fabric) are expected to provide diversified, recurring revenue streams and earnings stability.

Read the complete narrative.

Curious what underpins this outlook? The narrative’s valuation is bold, tied directly to projections for rapid revenue growth, expanding profit margins, and ambitious future earnings multiples. Don’t miss the precise numbers and the leap of faith they require.

Result: Fair Value of $156.22 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, risks remain, including tighter reimbursement policies or slower adoption in key markets. Either of these factors could dampen GeneDx’s projected growth trajectory.

Find out about the key risks to this GeneDx Holdings narrative.

Another View: Do Multiples Tell a Different Story?

While the narrative’s fair value points to upside, a look at the price-to-sales ratio paints a more cautious picture for GeneDx. The company trades at 9.1x sales, which is far above the US Healthcare industry average of 1.3x and peers’ 2x. Compared to its fair ratio of 5.9x, GeneDx looks pricey. Could the market recalibrate expectations?

See what the numbers say about this price — find out in our valuation breakdown.

Build Your Own GeneDx Holdings Narrative

If you have a different perspective or want to dig into the numbers personally, it's easy to craft your own GeneDx story in just a few minutes. Do it your way

A great starting point for your GeneDx Holdings research is our analysis highlighting 4 key rewards and 2 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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