Concerns Rise Over Exact Sciences Corp. (EXAS) Salesforce Reorganization Affecting Growth
Parnassus Investments, an investment management company, released the 'Parnassus Growth Equity Fund' first quarter 2025 investor letter. A copy of the letter can be downloaded here. In the first quarter, the Fund (Investor Shares) returned -8.59% (net of fees), outperforming the Russell 1000 Growth Index's -9.97% decline. In the first quarter, post-election optimism, driven by reduced regulation and a business-friendly environment, drifted away to concerns over fiscal and tariff uncertainties, which increased volatility and raised fears of a recession. In addition, please check the fund's top five holdings to know its best picks in 2025.
In its first-quarter 2025 investor letter, Parnassus Growth Equity Fund highlighted stocks such as Exact Sciences Corporation (NASDAQ:EXAS). Exact Sciences Corporation (NASDAQ:EXAS) provides cancer screening and diagnostic test products. The one-month return of Exact Sciences Corporation (NASDAQ:EXAS) was -4.42%, and its shares gained 26.44% of their value over the last 52 weeks. On June 27, 2025, Exact Sciences Corporation (NASDAQ:EXAS) stock closed at $53.65 per share with a market capitalization of $10.12 billion.
Parnassus Growth Equity Fund stated the following regarding Exact Sciences Corporation (NASDAQ:EXAS) in its Q1 2025 investor letter:
"We were concerned that the longer-than-anticipated reorganization of Exact Sciences Corporation's (NASDAQ:EXAS) salesforce might lead to medium-term growth falling short of our expectations. As a result, we reallocated capital to higher conviction names."
A research team in a laboratory discussing the results of a lab screening test for biomarkers.
Exact Sciences Corporation (NASDAQ:EXAS) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 41 hedge fund portfolios held Exact Sciences Corporation (NASDAQ:EXAS) at the end of the first quarter, which was 49 in the previous quarter. Exact Sciences Corporation's (NASDAQ:EXAS) first quarter revenue experienced 11% rise on reported and core basis exceeding the mid pint of guidance over $19 million. While we acknowledge the potential of Exact Sciences Corporation (NASDAQ:EXAS) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the undervalued AI stock set for massive gains.
In another article, we covered Exact Sciences Corporation (NASDAQ:EXAS) and shared the list of best genomics stocks to buy according to hedge funds. In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors. While we acknowledge the potential of EXAS as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money.
Disclosure: None. This article is originally published at Insider Monkey.
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