Shares of both Exact Sciences (NASDAQ: EXAS) and Qiagen (NYSE: QGEN) have undergone a rocky ride over the past few months. What caused this? For Qiagen, the stock dropped below $30 in October following the discontinuation of a key business line, slower-than-expected growth in China, and the retirement of its longtime CEO. Its stock bolted north of $40 in December on news of a potential buyer before retreating to the low $30 range after the company elected to remain independent. If you take out the rumor-fueled bump, the stock appears to be steadily gaining traction since its lows in the fall.
Exact Sciences, which reached a 52-week high of more than $120 per share in September, then began trading downward despite good news of an expanded approval for its cancer diagnostic test. Without a definitive trigger, one can only speculate what drove the sell-off. Profit-taking following nearly a 150% gain in the prior 18 months may have been partly to blame. The stock bottomed out in the high $70s in November before recovering above $100 in January after completing its acquisition of Genomic Health. In recent days, the stock has tapered off below $90.
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