GeneDx Holdings Corp. (NASDAQ:WGS) is one of the The best digital health stocks to buy now.
On October 29, 2025, Guggenheim raised GeneDx (NASDAQ:WGS) to a price target of $170 (Buy) following the company’s dramatic third-quarter announcement a day earlier. GeneDx had just reported revenue of $116.7 million, up 52% year-over-year and roughly ~12% ahead of the Street; Exome/genome revenue reached $98.9 million, an increase of 65%, and exome/genome testing volumes increased 33%. Gross profitability also expanded, with adjusted gross margin improving to 74% (GAAP 72%) and adjusted net income increasing to $14.7 million.
Tonhom1009/Shutterstock.com
That impression supports Guggenheim’s announcements, with exome and genome volumes still increasing, ASP rising and gross margin trending upward, hence the bigger target. Management also raised full-year 2025 guidance to $425-$428 million in revenue and 53% to 55% growth in exome/genome revenue, along with adjusted gross margin guidance of 70% to 71%.
Crucially, Guggenheim addressed comments on 2026 spending: Even with operating expenses rising next year, the firm is not interpreting this as a return to negative EPS, but rather framing it as an investment against a scaling curve now proven in pediatric and rare disease genomics.
GeneDx Holdings Corp. (NASDAQ:WGS) specializes in genomic testing, focusing on whole exome and whole genome sequencing for pediatric and rare disorders. Its offerings also include data solutions that support clinical decision making and precision medicine.
While we recognize the potential of WGS as an investment, we believe certain AI stocks offer greater growth potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that’s also benefiting significantly from Trump-era tariffs and the offshoring trend, check out our free report on best short-term AI stock.
READ NEXT: 30 stocks that should double in 3 years and 11 Hidden AI Stocks to Buy Right Now.
Disclosure: None.