<div id="readability-page-1"><div><p>GeneDx Holdings (WGS) updated its outlook, raising full year 2025 revenue guidance to US$427 million and pairing that with new 2026 projections that indicate continued growth in exome and genome testing revenue.</p> <p>See our latest analysis for GeneDx Holdings.</p> <p>Despite the improved revenue guidance, GeneDx Holdings’ recent share price performance has been weak, with a 30 day share price return of a 24.73% decline and a year to date share price return of a 22.99% decline, in contrast to a 1 year total shareholder return of 31.19% and a very large 3 year total shareholder return that is more than 7x. This suggests longer term investors have still seen substantial gains even as short term momentum has faded.</p> <p>If this kind of earnings update has your attention, it could be a good moment to broaden your watchlist and check out healthcare stocks as potential next ideas.</p> <p>With GeneDx raising its 2025 outlook to US$427 million in revenue and the share price still well below analyst targets, it raises a key question: Is the stock undervalued, or is the market already pricing in that future growth?</p> <h2>Most Popular Narrative: 38.2% Undervalued</h2> <p>At a last close of $101.88 versus a narrative fair value near $164.78, GeneDx is framed as materially discounted, with that gap tied to long term genomics adoption and profitability assumptions.</p> <blockquote> <p><em>Rapid expansion into new and underpenetrated markets, including general pediatrics (driven by American Academy of Pediatrics guidelines), NICU, and additional pediatric specialties, is described as positioning GeneDx for substantial future volume and revenue growth as adoption of genomics as a frontline diagnostic tool accelerates.</em></p> <p><em>Scaling proprietary AI-powered genomic interpretation platforms and integrating newly acquired Fabric Genomics technology is cited as enhancing efficiency and accuracy, which is expected to both lower per-sample costs and support margin expansion as the business grows.</em></p> </blockquote> <p>Read the complete narrative.</p> <p>Curious how that fair value is built? Revenue climbing faster than the market, margins stepping up sharply, and a rich earnings multiple all sit at the core. The exact mix of growth, profitability and discount rate is what makes this narrative worth unpacking.</p> <p><strong>Result: Fair Value of $164.78 (UNDERVALUED)</strong></p> <p>Have a read of the narrative in full and understand what's behind the forecasts.</p> <p>However, you also need to weigh risks like tougher reimbursement policies or slower physician adoption, which could pressure revenue assumptions and reduce margin expectations.</p> <p>Find out about the key risks to this GeneDx Holdings narrative.</p> <h2>Another View: High Sales Multiple Keeps Things Balanced</h2> <p>While the narrative and our fair value estimate point to GeneDx trading at a steep discount, its current P/S ratio of 7.3x is more than double peers at 3.4x and above an estimated fair ratio of 5.5x. If growth stumbles, could that rich sales multiple be what the market re-prices first?</p> <p>See what the numbers say about this price — find out in our valuation breakdown.</p> <figure><img height="476" src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/355ae0a7-ce85-4b2e-8d8d-4cd81f3b6290/chart/ps-multiple-vs-industry?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="746" original-src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/355ae0a7-ce85-4b2e-8d8d-4cd81f3b6290/chart/ps-multiple-vs-industry"/><figcaption>NasdaqGS:WGS P/S Ratio as at Jan 2026</figcaption></figure><h2> Build Your Own GeneDx Holdings Narrative</h2> <p>If you look at the numbers and come to a different conclusion, or simply prefer to test your own assumptions, you can build a full narrative in just a few minutes with Do it your way.</p> <p>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.</p> <h2>Looking for more investment ideas?</h2> <p>If GeneDx has you thinking about what else might be worth your time, do not stop here. Let the data surface more focused ideas for you.</p> <ul> <li>Target reliable income by scanning these 12 dividend stocks with yields &gt; 3% that could help strengthen the yield side of your portfolio.</li> <li>Spot potential mispricing early by checking these 880 undervalued stocks based on cash flows that currently screen as attractive based on cash flow assumptions.</li> <li>Position yourself in fast moving themes through these 19 cryptocurrency and blockchain stocks linked to digital assets and blockchain use cases.</li> </ul> <p><em> This article by Simply Wall St is general in nature. <strong>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.</strong> 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.</em></p></div></div>

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<p>GeneDx Holdings (WGS) has raised its 2025 revenue guidance to $427 million, indicating growth in exome and genome testing. Despite this positive outlook, the stock has seen a 24.73% decline over the past 30 days and a 22.99% decline year-to-date. The stock is currently viewed as undervalued, with a fair value estimate of $164.78 compared to its last close of $101.88. The company is expanding into new markets and enhancing its genomic interpretation platforms, but risks such as reimbursement policies could impact future revenue.</p>

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A Look At GeneDx Holdings (WGS) Valuation After Higher 2025 Outlook And New 2026 Revenue Targets