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Yahoo
28-05-2025
- Business
- Yahoo
1 Stock Down 35% This Year You'll Regret Not Buying on the Dip, According to Wall Street
NovoCure's stock is down significantly this year, partly due to persistent net losses. However, the company is making significant clinical and regulatory progress. Although there are some risks, the stock could surge due to significant catalysts. 10 stocks we like better than NovoCure › It's been a challenging year for NovoCure (NASDAQ: NVCR), an oncology-focused biotech. The stock is down by 35% since early January. Though marketwide issues probably didn't help, NovoCure mostly has itself to blame for its year-to-date performance. Its shares declined after a disappointing fourth-quarter update. Still, the stock could have significant upside potential. NovoCure's average price target on Wall Street is $32.57, according to Yahoo! Finance. That implies it could jump by almost 70% from its current levels. Should investors be as bullish as the Street on NovoCure? NovoCure develops and markets wearable devices that emit electrical fields, known as tumor-treating fields (TTFields), which inhibit the growth of cancer cells. These devices don't necessarily replace traditional therapies; they are often used concurrently with them (although in some cases, they can be stand-alone treatments). This innovative approach to treating one of the leading causes of death worldwide has found some success. NovoCure markets two devices: Optune Gio, cleared to treat an aggressive type of brain cancer called glioblastoma, and Optune Lua, approved to target both metastatic non-small cell lung cancer (NSCLC) and malignant pleural mesothelioma, a rare, aggressive lung cancer. Greater adoption of these devices in markets where they're available is helping improve NovoCure's financial results. In the first quarter, the company's revenue increased by 12% year over year to $155 million. It had 4,268 active patients on therapy as of the end of the period, an 11% increase compared to the year-ago period. However, NovoCure remains unprofitable; its net loss per share in the first quarter was $0.31. True, that was better than the $0.36 reported in the year-ago period. But given the uncertain environment and ongoing market volatility, investors may have a deep bias for well-established, profitable stocks at the moment. So NovoCure's shares could remain somewhat turbulent in the short run. However, recent developments could help the company turn things around and match the Street's estimates. NovoCure has achieved several clinical and regulatory milestones in the past six months. In April, it received clearance from the relevant European authority for Optune Lua for the treatment of metastatic NSCLC. NovoCure estimates that more than 400,000 patients are diagnosed with NSCLC every year on the continent. Though its device will only target a small portion of this total, the regulatory nod significantly expands its addressable market. Optune Lua has been approved in the U.S. for NSCLC only since October. In the U.S., approximately 30,000 patients become eligible for the device out of 193,000 annual NSCLC diagnoses. NovoCure still has a massive white space in this niche -- even getting to 5,000 patients in NSCLC alone would be a gigantic win for the company. Meanwhile, in December, it announced positive results from a phase 3 clinical trial for its TTFields for unresectable, locally advanced pancreatic adenocarcinoma. This was the first time any treatment showed a statistically significant benefit in overall survival for patients with this type of pancreatic cancer, which is mostly out of reach by current standards of care. It has a five-year survival rate of just 13%, while its death rates are increasing, even as they decrease for most other types of cancer. NovoCure estimates 67,000 annual diagnoses in the U.S., so there is a vast unmet need. The company appears likely to secure another key approval here and go on to make progress in this field. Yet the stock is still down massively for the year, even though it jumped following recent developments, including the NSCLC approval in Europe. What gives? NovoCure's consistent net losses remain a concern. However, if you're willing to look past those and the somewhat elevated risk they add to the stock, NovoCure could be an excellent pickup at current levels. Pending approval in pancreatic cancer and solid progress in NSCLC, revenue could grow substantially and allow the healthcare specialist to turn a profit. Wall Street analysts might be onto something here. But if you follow their lead, it's essential to start with a small position in the stock and then add more only once (or if) it continues to show good progress. Before you buy stock in NovoCure, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and NovoCure wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $639,271!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $804,688!* Now, it's worth noting Stock Advisor's total average return is 957% — a market-crushing outperformance compared to 167% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 19, 2025 Prosper Junior Bakiny has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends NovoCure. The Motley Fool has a disclosure policy. 1 Stock Down 35% This Year You'll Regret Not Buying on the Dip, According to Wall Street was originally published by The Motley Fool
Yahoo
25-04-2025
- Business
- Yahoo
Why NovoCure Stock Skyrocketed This Week
Shares of NovoCure (NASDAQ: NVCR) are edging higher on Thursday. The company's stock gained 0.11% as of 3:30 p.m. ET after fluctuating between gains and losses throughout the session. This muted reaction comes as the S&P 500 gained 0.3% and the Nasdaq Composite rose 0.6%. Why? The medical technology company reported solid first-quarter results. The company also provided several key updates that investors reacted positively to. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue » A key highlight from NovoCure's earnings call was the announcement of European CE Mark approval for OptuneLua in the treatment of metastatic non-small cell lung cancer (NSCLC). The CE Mark allows the company to market the device in Europe. OptuneLua, a medical device that emits an electric field disrupting cancer cells, uses NovoCure's core technology. The launch in Europe is an important milestone in the company's international expansion strategy and will help the company drive revenue growth. Investors also received promising news regarding NovoCure's Phase 3 clinical trial for patients with a specific type of pancreatic cancer that is particularly hard to treat. The trial data showed a "meaningful survival benefit" and is the first to do so for this particular cancer. The results mean the company could open another major market for NovoCure's tumor treating technology. NovoCure reported $155 million in net revenue for Q1 2025, representing a 12% increase year over year. This growth was driven by expansion of the company's active patient base, especially in France, Japan, Germany, and the United States. As the company grows, its margins were slightly reduced, from 76% to 75% year over year. The reduction was explained, however, by a lag in reimbursement for some of its treatments. The company is still operating at a loss, however, losing $34 million this quarter. That's not unusual for a company in NovoCure's position, however. As the company launches in Europe and continues to prove its technology is useful in more indications, its revenue could grow considerably. I think the stock is headed in the right direction and is a solid pick for those with an elevated risk tolerance. Before you buy stock in NovoCure, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and NovoCure wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $591,533!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $652,319!* Now, it's worth noting Stock Advisor's total average return is 859% — a market-crushing outperformance compared to 158% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of April 21, 2025 Johnny Rice has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends NovoCure. The Motley Fool has a disclosure policy. Why NovoCure Stock Skyrocketed This Week was originally published by The Motley Fool
