A year ago, Fulgent Genetics (NASDAQ:FLGT) stock was trading at around $10 a share. Last week, it closed at more than $85. If you were to invest $10,000 in the business a year ago, you would be sitting on a gain of about $75,000 right now. That's an exceptional return in a fairly short time frame.
But what is behind Fulgent's rapid ascent, and can the stock continue rising?
Fulgent has been a key provider of COVID-19 testing services and that has given the company's numbers a considerable boost. When it last reported its quarterly results on March 4, its sales of $295 million were up a staggering 3,400% year over year. It delivered 3.2 million tests which was 230 times last year's Q4 number. And for 2021, it is still expecting its sales to grow at a rate of 90%, with its top line climbing to $800 million. In 2019, Fulgent's sales totaled just $33 million.
The company remains optimistic about the future with CEO Ming Hsieh stating that "I believe we are extremely well positioned in the years ahead as vaccine rollout continues and our lives return to a state of normalcy."
Fulgent also generated 43% year-over-year growth in testing this past quarter that didn't involve COVID-19.
The company is growing at a phenomenal rate and the big question is what it will look like after concerns surrounding the pandemic subside. However, it may be a while before that happens. And that means that in the meantime, Fulgent could continue to be a hot growth stock to buy. Despite the impressive gains it has generated thus far, it may not be too late to invest in the company.
