A number of stocks jumped in the afternoon session after a Politico report revealed that the White House plans to pitch a two-year extension of Obamacare subsidies. The proposal would extend subsidies set to expire at the end of the year, with new eligibility limits for individuals with incomes up to 700% of the federal poverty line. These subsidies, a key part of the Affordable Care Act (ACA), help lower the cost of health insurance for consumers, making them crucial for insurers focused on the ACA marketplace. An extension would likely support sustained enrollment, securing a key revenue stream for these companies.
What a time it’s been for Guardant Health. In the past six months alone, the company’s stock price has increased by a massive 171%, setting a new 52-week high of $106.25 per share. This was partly due to its solid quarterly results, and the run-up might have investors contemplating their next move.
As the Q3 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the healthcare providers & services industry, including Pediatrix Medical Group (NYSE:MD) and its peers.
A number of stocks jumped in the afternoon session after comments from a key Federal Reserve official bolstered hopes for an interest rate cut. New York Federal Reserve President John Williams stated he sees “room for a further adjustment” in the near term, sparking a significant market rally. Following his remarks, the probability of the central bank cutting rates at its December meeting jumped from 39% to over 73%, according to the CME FedWatch tool. This positive sentiment provided relief to markets amid concerns over high valuations, particularly in AI-related stocks.
Mid-cap stocks have the best odds of scaling into $100 billion corporations thanks to their tested business models and large addressable markets.
But the many opportunities in front of them attract significant competition, spanning from industry behemoths with seemingly infinite resources to small, nimble players with chips on their shoulders.
The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how healthcare providers & services stocks fared in Q3, starting with McKesson (NYSE:MCK).
Growth is a hallmark of all great companies, but the laws of gravity eventually take hold.
Those who rode the COVID boom and ensuing tech selloff in 2022 will surely remember that the market’s punishment can be swift and severe when trajectories fall.
Shares of diagnostics company Guardant Health (NASDAQ:GH)
fell 8.8% in the morning session after the company announced the pricing of an upsized convertible senior notes offering and a public stock offering, raising concerns about dilution for existing shareholders. The company priced $350 million of convertible senior notes, an increase from the previously announced $300 million offering. Concurrently, Guardant Health priced a public offering of more than 3.3 million shares of its common stock at $90.00 per share. Such financial moves, while raising capital for the company, often lead to a drop in stock price. This is because the issuance of new shares and securities that can be converted into shares can dilute the ownership stake of current investors, making each existing share represent a smaller piece of the company.
Guardant Health’s third quarter was marked by robust revenue growth and a positive market reaction, with outperformance across its main business lines. Management attributed these results to accelerating oncology test volumes, continued adoption of the Guardant360 platform, and the early commercial success of Shield in cancer screening. Co-CEO Helmy Eltoukhy highlighted the company’s ability to deliver “broad-based growth across our business,” citing stronger biopharma partnerships and effective cost controls, particularly in the Reveal and Shield product lines. The company’s progress in expanding its clinical utility and reducing per-test costs contributed meaningfully to margin improvements this quarter.
Exciting developments are taking place for the stocks in this article.
They’ve all surged ahead of the broader market over the last month as catalysts such as new products and positive media coverage have propelled their returns.
Stay up-to-date with the latest market trends in the middle of the day on Thursday. Explore the top gainers and losers during today's session in our detailed report.
Diagnostics company Guardant Health (NASDAQ:GH) announced better-than-expected revenue in Q3 CY2025, with sales up 38.5% year on year to $265.2 million. The company’s full-year revenue guidance of $967.5 million at the midpoint came in 4.9% above analysts’ estimates. Its non-GAAP loss of $0.39 per share was 20.3% above analysts’ consensus estimates.
The US market is yet to commence its session on Thursday, but let's get a preview of the pre-market session and explore the top gainers and losers driving the early market movements.
