QM · rank #15 · 2026-09-04
CDNA
NASDAQ · $2.71B (USD)
The exact numbers the algorithm saw.
| Momentum 12-1 Return from 12 months ago to 1 month ago. | +254.09% |
|---|---|
| ROE TTM Return on equity, trailing 12 months. | +29.5% |
| Profit margin Net profit margin, trailing 12 months. | +24.2% |
| Market cap (USD) Size filter: > $500M required. | $2.71B |
| Anchor (recent) Close on 2026-08-05 | $45.50 |
| Anchor (far) Close on 2025-08-05 | $12.85 |
The AI research card
Independent qualitative review of each pick before the order is placed. On the rare day the research service is unavailable, the paper book trades on the quant ranking alone and no card appears here.
Summary
CareDx is a precision medicine diagnostics company focused on solid organ transplant monitoring, specialty oncology, and cell therapy, generating ~$490–500M in 2026 guided revenue primarily from high-margin testing services.
Rationale
The momentum_12_1 signal of 2.55 is reinforced by a genuine fundamental catalyst stack — 52% YoY revenue growth, 61% testing services growth, raised guidance, a clean balance sheet with $374M cash and no debt, and 29.5% ROE — making this a quality-driven momentum name, not a sentiment-only trade.
Material risks
- 1Medicare LCD reimbursement risk is already embedded in guidance, meaning any adverse coverage expansion or additional LCD determinations on transplant diagnostics could directly impair the core testing services revenue line that drives 76% of total revenue.
- 2Post-divestiture business concentration in testing services and the simultaneous integration of NavDx and the VANTx AI platform introduce execution risk at a moment when the company is scaling two new strategic pillars with no disclosed contracted backlog to underwrite forward volumes.
AI verdict council
Each pick is reviewed independently by 3 models before any order. 3 of 3 voted to proceed.