QM · rank #6 · 2026-10-21
CDNA
NASDAQ · $3.35B (USD)
The exact numbers the algorithm saw.
| Momentum 12-1 Return from 12 months ago to 1 month ago. | +272.38% |
|---|---|
| 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. | $3.35B |
| Anchor (recent) Close on 2026-09-21 | $54.33 |
| Anchor (far) Close on 2025-09-19 | $14.59 |
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 the leading U.S. transplant molecular-diagnostics company offering dd-cfDNA and gene-expression tests (AlloSure, AlloMap, NavDx) that detect organ rejection earlier and less invasively than biopsy.
Rationale
The quality-momentum signal is reinforced by 52% YoY revenue growth, 74% non-GAAP gross margins, ~30% ROE, a 24% profit margin, and raised full-year guidance — all consistent with a high-quality compounder accelerating on real fundamental drivers rather than sentiment alone.
Material risks
- 1Medicare LCD and reimbursement changes are management-identified material factors, and the $16M of prior-period revenue catch-up embedded in Q2 inflates the momentum signal — a coverage or collection-rate cut could sharply compress Testing Services economics and break the growth trajectory.
- 2Natera's Prospera competes directly on dd-cfDNA without CareDx holding a sole-source or patent-monopoly position, meaning pricing pressure or transplant-center switching could erode the margin profile that underpins the quality screen.
AI verdict council
Each pick is reviewed independently by 3 models before any order. 3 of 3 voted to proceed.