Jun. 3, 2025 at 2:03 PM ET7 min read

Guardant Health Stocks Surge: Is It Too Late to Buy?

Tim BohenAvatar
Written by Tim Bohen
Reviewed by Ben Sturgill Fact-checked by Ellis Hobbs

Guardant Health Inc.’s stocks have been trading up by 10.72 percent due to analyst optimism after promising quarterly results.

Surge in Technology and Innovation

  • With the publication of its extensive study on circulating tumor DNA, Guardant Health has shone brightly in precision oncology. This development reveals how the Guardant Reveal test can predict colon cancer recurrence and improve treatment.
  • The National Comprehensive Cancer Network (NCCN) has embraced Guardant Health’s Shield blood test in its updated guidelines for colorectal cancer screening. This highlights the test’s FDA approval and success in the ECLIPSE Study.

  • A further boost in confidence comes from Guardant Health’s latest announcement on its Guardant360 CDx test. This test has shown remarkable progress in clinical trials, marking a pivotal step forward for breast cancer treatment innovations.

Candlestick Chart

Live Update At 14:02:56 EST: On Tuesday, June 03, 2025 Guardant Health Inc. stock [NASDAQ: GH] is trending up by 10.72%! Discover the key drivers behind this movement as well as our expert analysis in the detailed breakdown below.

Guardant Health’s Financial Pulse: A Mixed Bag

When it comes to trading, it’s crucial that traders undertake thorough research and develop a comprehensive strategy before executing any trades. Analyzing market trends, understanding the financial health of the companies involved, and having clear entry and exit points are essential components of a well-thought-out plan. As Tim Bohen, lead trainer with StocksToTrade says, “If you’re still guessing at the end of your analysis, it’s probably not a trade worth taking.” This highlights the importance of being confident in your trading decisions. Without a solid basis for a trade, one might find themselves vulnerable to unnecessary risks, which could lead to unfavorable outcomes. Therefore, confident and knowledgeable decision-making is key to successful trading.

Guardant Health’s recent earnings reveal a complex narrative. While the company showed significant revenues of about $739M, indicating a healthy market presence, the margins tell a somewhat concerning tale. The gross margin sits comfortably high, at 90.4%, showcasing the efficient use of resources, yet other metrics, like the EBITDA margin at -34.6%, suggest operational challenges.

The valuation metrics, when scrutinized, reflect some overvaluation concerns. The company’s price-to-sales ratio is 6.74, a bit hefty for investors seeking undervalued opportunities. Meanwhile, the liquidity ratios, particularly the current ratio at 4.1, suggest solid financial health and an ability to meet short-term obligations without hassle.

A quick perusal of the assets depicts steady operational activity, with an asset turnover ratio of 0.5. It’s slow, hinting at potential improvements. In terms of debt, things look relatively stable. The company’s long-term debt arrangement is deliberate, maintaining a reasonable long-term debt to capital ratio of 1.24, reflecting careful financial planning. This portfolio reinforces the management’s strategic pivot towards sustaining long-term growth.

More Breaking News

On a rather different note, the earnings report sheds light on the company’s prevalent spending habits. The operating expenses are considerably high at $239M, indicating a robust investment in R&D and administrative expenses. However, they aim at innovation and growth, which may eventually bolster the company’s market stance.

Healthy Prospects and Strategic Innovations

The latest announcements have stirred the pot in a promising direction for Guardant Health. The Guardant360 liquid biopsy enhancements bring in nearly a dozen smart applications, advancing cancer diagnostics and subtyping. This move significantly strengthens its market position and could very well lead to broadening its customer base.

The company’s co-CEOs, Helmy Eltoukhy and AmirAli Talasaz, have been celebrated for their influential strides in precision oncology. Their inclusion in the 2025 TIME100 Health list underscores their contributions and casts a spotlight on the company’s innovative trajectory, particularly through its novel blood tests for cancer screening. These accolades affirm Guardant Health’s pivotal role in shaping the future of cancer detection and management.

There’s a ripple effect from the endorsement of Guardant’s Shield blood test by NCCN in updated colorectal cancer guidelines. This endorsement not only ratifies the test’s efficacy but also strengthens its credibility, likely leading to an increase in its market adoption.

Paving the Future with Strategic Moves

With the price targets also showing an upward surge, as noted by analysts at Piper Sandler and Scotiabank, there’s a palpable buzz in the air for Guardant Health. The revised price targets paint a positive trajectory, signifying investor confidence and potential growth in stock market speculations.

Guardant Health’s plan to expand its test portfolio, including its comprehensive suite of immunohistochemistry (IHC) testing for all tumor biomarkers, positions it as a frontrunner in precision cancer therapeutics. This strategy rides on the wave of offering oncologists detailed insights into tumor subtypes – a crucial puzzle piece in the realm of targeted treatments.

The stock’s sharp movement, gaining momentum over the past few days, places it on the radar for many investors pondering its potential. For those looking at Guardant Health as a future income stream, these recent breakthroughs and accolades present enticing prospects.

Navigating the Course Ahead

With an impressive gamut of liquid biopsy tests, Guardant Health is undeniably evolving in precision medicine. The variances in its profit margins seem to skim the importance of these pioneering strides.

The stock’s recent jump suggests traders are recognizing potential growth hidden under layers of innovation and strategic market positioning. However, with every trade comes an innate caveat: weighing the zeal of innovation against the backdrop of fiscal steadiness. As Tim Bohen, lead trainer with StocksToTrade says, “A consistent trading routine beats sporadic action every time. Show up daily, and you’ll start to see the patterns others miss.”

So, with all these facets colliding, is it too late to ride the wave of Guardant Health’s stock boom? Analysts find the answer lies firmly in the willing trader’s keen eye for balancing potential growth against associated financial risks.

Understanding the ebbs and flows of the stock is key. As Guardant Health positions itself at the forefront of cancer diagnostics, the company’s narrative is teetering on a path laden with promise and empirical potential. Savvy traders with foresight and a penchant for innovation may indeed find value amidst this orchestrated precision in healthcare innovation.

This is stock news, not investment advice. StocksToTrade News delivers real-time stock market updates tailored to highlight the key catalysts driving short-term price movements. Our coverage is designed for active traders and investors who thrive in fast-moving markets, with a focus on volatile sectors like penny stocks, AI stocks, Robinhood stocks and other momentum plays. From earnings reports and FDA approvals to mergers, new contracts, and unusual trading volume, we break down the events that can spark significant price action.

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