Could Exact Sciences Be a Millionaire-Maker Stock?
Cancer diagnostic leader Exact Sciences (NASDAQ: EXAS) isn't having the best of years, and not just because of the COVID-19 pandemic. In February, the company announced it was selling approximately $1 billion in senior convertible notes to raise money. These notes will carry an annual interest rate of 0.3750% and will mature in 2028.
Investors were not thrilled at the prospect of Exact Sciences taking on more debt, and this round of fundraising probably contributed to the company's stock dropping by more than 40% in the first quarter. Still, Exact Sciences has since rebounded along with the broader market. As of this writing, the company's shares are down 6% year to date, while the S&P 500's loss stands at 12.2% over the same period.
It's difficult to assess how Exact Sciences will perform within the next few months. We have yet to see the full economic impact of the pandemic, and the company's stock could go either way. Looking further down the road, though, Exact Sciences boasts several exciting opportunities that could help its stock perform well for many years to come. But could this healthcare company turn ordinary investors into millionaires?
Source Fool.com
