Evaluating Guardant Health: Insights From 5 Financial Analysts

In the preceding three months, 5 analysts have released ratings for Guardant Health GH, presenting a wide array of perspectives from bullish to bearish.

In the table below, you'll find a summary of their recent ratings, revealing the shifting sentiments over the past 30 days and comparing them to the previous months.

In the assessment of 12-month price targets, analysts unveil insights for Guardant Health, presenting an average target of $32.0, a high estimate of $44.00, and a low estimate of $28.00. Experiencing a 17.95% decline, the current average is now lower than the previous average price target of $39.00.

Diving into Analyst Ratings: An In-Depth Exploration

In examining recent analyst actions, we gain insights into how financial experts perceive Guardant Health. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to Guardant Health. This offers insight into analysts' perspectives on the current state of the company.
• Rating: Offering insights into predictions, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Guardant Health compared to the broader market.
• Price Targets: Understanding forecasts, analysts offer estimates for Guardant Health's future value. Examining the current and prior targets provides insight into analysts' changing expectations.

Understanding these analyst evaluations alongside key financial indicators can offer valuable insights into Guardant Health's market standing. Stay informed and make well-considered decisions with our Ratings Table.

Stay up to date on Guardant Health analyst ratings.

Delving into Guardant Health's Background

Guardant Health, Inc, based in Redwood City, California, is a leader in liquid-based cancer tests for clinical and research use. The company offers Guardant360 LDT, a liquid biopsy test for treatment selection in advanced stage cancer, Guardant360 CDx, an FDA-approved companion diagnostic for several targeted therapies, and Guardant OMNI, a broader gene panel for immuno-oncology research. In 2021, Guardant launched Reveal, a tumor-agnostic molecular residual disease, or MRD, test. In 2022, the company launched a lab-developed test version of Shield, a liquid biopsy for colorectal cancer, or CRC, screening. Additionally, Guardant offers research development services such as regulatory approval consultancy and clinical trial referrals.

Financial Insights: Guardant Health

Market Capitalization Analysis: Below industry benchmarks, the company's market capitalization reflects a smaller scale relative to peers. This could be attributed to factors such as growth expectations or operational capacity.

Revenue Growth: Guardant Health's revenue growth over a period of 3 months has been noteworthy. As of 31 March, 2024, the company achieved a revenue growth rate of approximately 30.9%. This indicates a substantial increase in the company's top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Health Care sector.

Net Margin: Guardant Health's net margin lags behind industry averages, suggesting challenges in maintaining strong profitability. With a net margin of -68.24%, the company may face hurdles in effective cost management.

Return on Equity (ROE): Guardant Health's ROE is below industry standards, pointing towards difficulties in efficiently utilizing equity capital. With an ROE of -101.32%, the company may encounter challenges in delivering satisfactory returns for shareholders.

Return on Assets (ROA): Guardant Health's ROA lags behind industry averages, suggesting challenges in maximizing returns from its assets. With an ROA of -6.59%, the company may face hurdles in achieving optimal financial performance.

Debt Management: The company faces challenges in debt management with a debt-to-equity ratio higher than the industry average. With a ratio of 19.73, caution is advised due to increased financial risk.

What Are Analyst Ratings?

Ratings come from analysts, or specialists within banking and financial systems that report for specific stocks or defined sectors (typically once per quarter for each stock). Analysts usually derive their information from company conference calls and meetings, financial statements, and conversations with important insiders to reach their decisions.

Some analysts will also offer forecasts for metrics like growth estimates, earnings, and revenue to provide further guidance on stocks. Investors who use analyst ratings should note that this specialized advice comes from humans and may be subject to error.

This article was generated by Benzinga's automated content engine and reviewed by an editor.