GH Should I Buy
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Guardant Health Inc. (GH) is not a strong buy at the moment for a beginner, long-term investor with $50,000-$100,000 available for investment. While the company has promising growth drivers, recent technical indicators, financial performance, and trading sentiment suggest a cautious approach. The stock is better suited for monitoring until further positive developments or a more favorable entry point emerges.
The stock's MACD is negatively expanding (-1.229), RSI is at 38.177 (neutral zone), and moving averages are converging, indicating no clear upward momentum. The price is trading below the pivot level (107.475) and close to the first support level (99.652), suggesting potential downside risk.
Analysts have raised price targets significantly, with UBS setting a target of $175 and other firms projecting $120-$135, reflecting strong growth expectations.
The launch of the Shield test, the first FDA-approved non-invasive blood-based screening tool for colorectal cancer, positions the company as an innovator in diagnostics.
Revenue growth of 38.50% YoY in Q3 2025 highlights strong business momentum.
Net income dropped by -13.95% YoY, and EPS declined by -15.91% YoY, reflecting ongoing profitability challenges.
The stock has experienced a -4.48% regular market decline, with additional post-market weakness (-0.73%), indicating bearish sentiment.
Technical indicators do not support a strong upward trend, and the stock has a 70% chance of declining in the next week.
In Q3 2025, revenue increased by 38.50% YoY to $265.2M, showcasing strong growth. However, net income dropped to -$92.7M (-13.95% YoY), and EPS fell to -0.74 (-15.91% YoY), indicating profitability concerns. Gross margin improved to 64.71% (+5.91% YoY), showing operational efficiency gains.
Analysts are overwhelmingly positive on the stock, with multiple Buy ratings and raised price targets. UBS has the highest target at $175, citing strong growth drivers, FDA milestones, and Medicare reimbursement opportunities. However, Evercore ISI downgraded the stock to In Line with a price target of $105, reflecting some caution.
