Exact Sciences Corp. faces concerns over salesforce reorganization impacting growth, leading to negative sentiment.

From Yahoo Finance: 2025-06-30 07:35:00

Parnassus Investments released their first quarter 2025 investor letter for the Parnassus Growth Equity Fund, showing a return of -8.59% outperforming the Russell 1000 Growth Index’s -9.97% decline. Post-election optimism shifted to concerns over fiscal and tariff uncertainties, leading to increased volatility and recession fears.

One of the highlighted stocks in the Parnassus Growth Equity Fund’s investor letter was Exact Sciences Corporation (NASDAQ: EXAS), a company providing cancer screening and diagnostic test products. Exact Sciences Corporation had a one-month return of -4.42% and a 26.44% gain in the last 52 weeks, closing at $53.65 per share on June 27, 2025.

Parnassus Growth Equity Fund expressed concerns in their Q1 2025 investor letter about Exact Sciences Corporation’s (NASDAQ: EXAS) longer-than-anticipated salesforce reorganization potentially impacting medium-term growth. They reallocated capital to higher conviction names as a result.

Despite Exact Sciences Corporation (NASDAQ: EXAS) not being among the 30 most popular stocks among hedge funds, 41 hedge fund portfolios held the stock at the end of the first quarter. The company experienced an 11% rise in revenue on a reported and core basis, exceeding guidance by over $19 million. While acknowledging the potential of Exact Sciences Corporation as an investment, the focus remains on AI stocks for higher returns within a shorter timeframe.

Read more: Concerns Rise Over Exact Sciences Corp. (EXAS) Salesforce Reorganization Affecting Growth