Is Invitae Stock a Buy Under $5?

NYSE: NVTA | Invitae Corporation  News, Ratings, and Charts

NVTA – Invitae’s (NVTA) significant revenue growth in its most recently reported quarter and its success in bringing customized health monitoring into the mainstream have heightened investor optimism around the stock. However, given the company’s widening losses and poor profitability, the question is, is it worth betting on the stock at the current price level? Read on, let’s find out.

Genetic testing company Invitae Corporation (NVTA - Get Rating) in San Francisco offers genetic tests in various therapeutic fields, including cardiology, neurology, hereditary cancer, pediatrics, and uncommon disorders.

The stock has slumped 83.1% in price over the past year and 34.2% over the past month to close yesterday’s trading session at $5.57. In addition, it is currently trading 84.3% below its 52-week high of $35.51.

NVTA’s remarkable tailored medicines and enhanced trials enabled it to generate significant revenue growth in its last reported quarter, but the firm has yet to deliver a profit. Indeed, the company’s negative profit margins and rising expenditures and losses are concerning.

Here is what could shape NVTA’s performance in the near term:

Inadequate Financials

NVTA’s total revenue increased 19.4% year-over-year to $123.69 million for the three months ended March 31, 2022. However, its operating expenses increased 55.9% from their year-ago value to $336.92 million. Its operating loss grew 89.8% from the prior-year quarter to $213.24 million. And the company’s net loss increased 66.1% year-over-year to $181.86 million in the prior-year period. Its loss per share came in at $0.80 over this period.

Poor Profitability

NVTA’s trailing-12-months gross profit margin of 24.3% is 56% lower than the 55.2% industry average. Its 0.11% trailing-12-months asset turnover ratio is 68.5% lower than the 0.35% industry average. Also, its trailing-12-months ROA, net income margin, and ROC are negative 7.7%, 82.3%, and 13.6%, respectively.

POWR Ratings Reflect Bleak Outlook

NVTA has an overall F rating, which equates to a Strong Sell in our proprietary POWR Ratings system. The POWR ratings are calculated by considering 118 distinct factors, with each factor weighted to an optimal degree.

Our proprietary rating system also evaluates each stock based on eight distinct categories. NVTA has a D grade for Stability and Quality. The stock’s 1.75  beta is consistent with its Stability grade. In addition, NVTA’s poor profitability is in sync with the Quality grade.

Among the 50 stocks in the D-rated Medical – Diagnostics/Research industry, NVTA is ranked #48.

Beyond what I have stated above, one  can view NVTA ratings for Growth, Momentum, Value, and Sentiment here.

Click here to checkout our Healthcare Sector Report for 2022

Bottom Line

Although NVTA’s advances in customized health monitoring and treatment development have increased investors’ optimism about the stock’s prospects, we believe investors should avoid NVTA since the company’s weak fundamentals and negative profit margins could impact its stock’s price performance in the near term.

How Does Invitae Corporation (NVTA) Stack Up Against its Peers?

While NVTA has an overall F rating, one might want to consider its industry peers, Global Cord Blood Corporation (CO - Get Rating) and Qiagen N.V. (QGEN - Get Rating), which have an overall A (Strong Buy) rating.

What To Do Next?

If you would like to see more top stocks under $10, then you should check out our free special report:

3 Stocks to DOUBLE This Year

What gives these stocks the right stuff to become big winners?

First, because they are all low-priced companies with explosive growth potential, that excel in key areas of growth, sentiment and momentum.

But even more important is that they are all top Buy rated stocks according to our coveted POWR Ratings system, Yes, that same system where top-rated stocks have averaged a +31.10% annual return.

Click below now to see these 3 exciting stocks which could double (or more!) in the year ahead:

3 Stocks to DOUBLE This Year

Want More Great Investing Ideas?

3 Stocks to DOUBLE This Year


NVTA shares fell $0.39 (-7.00%) in premarket trading Wednesday. Year-to-date, NVTA has declined -63.52%, versus a -12.06% rise in the benchmark S&P 500 index during the same period.


About the Author: Pragya Pandey


Pragya is an equity research analyst and financial journalist with a passion for investing. In college she majored in finance and is currently pursuing the CFA program and is a Level II candidate. More...


More Resources for the Stocks in this Article

TickerPOWR RatingIndustry RankRank in Industry
NVTAGet RatingGet RatingGet Rating
COGet RatingGet RatingGet Rating
QGENGet RatingGet RatingGet Rating

Most Popular Stories on StockNews.com


How is the Stock Market Like a Helium Balloon?

Stocks have finally broke above 6,000 for the S&P 500 (SPY). The more important question is what comes next? Steve Reitmeister provides his answer in his latest market commentary.

Has the Bull Market Run Out of Steam?

It seems the S&P 500 (SPY) advance has stalled and cant crack above strong resistance at 6,000. Why is that happening? And what happens next? Read on for the answers...

Investors Remain “Cautiously Optimistic”

The S&P 500 (SPY) has made great advances since the lows of early April. Yet seem to be stuck under resistance at 6,000. What happens next depends on tariff talks. So let’s talk about the latest news on that front.

Bull Market Til Proven Otherwise

The phrase that paid for investors in 2025 was “Bull market til proven otherwise” Steve Reitmeister explains why in his latest market update and preview of top stock picks.

Investor Alert: Mission Accomplished?

The S&P 500 (SPY) has broken out above the 200 day moving average. Does that mean that bear market fears are now over? And should investors be riding the bull to new heights? Read on for Steve Reitmeister’s answer...

Read More Stories

More Invitae Corporation (NVTA) News View All

Event/Date Symbol News Detail Start Price End Price Change POWR Rating
Loading, please wait...
View All NVTA News