Stanley Druckenmiller Put 18% of His $3.4 Billion Portfolio in This One Stock. Is Natera a Buy?

Should you travel Druckenmiller into Natera stock? Let's instrumentality a person look astatine the numbers and find out.

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Advances successful DNA investigating

Modern medicines and treatments person led to a increasing request for precocious diligent diagnostics. To tailor medicines for patients successful prenatal attraction oregon with cancer, you request to recognize much astir their bodies and circumstantial familial makeup.

Natera specializes successful bridging the spread betwixt doctors and patients, utilizing innovative cell-free DNA investigating to assistance diagnose outcomes. Specifically, it serves the prenatal and crab investigating markets. For large patients, a doc tin usage a Natera trial to diagnose immoderate problems with the fetus, each with minimal carnal intervention. Its crab investigating has a assortment of usage cases, but an important 1 is checking for residual illness grounds successful patients, which tin beryllium invaluable for idiosyncratic dealing with crab successful remission.

This marketplace is increasing similar a weed, and Natera is starring the mode with its best-in-class investigating innovations and patent protections. It has besides precocious made strides successful a caller pillar of its business: organ donor testing, which evaluates however good a caller organ functions aft transplantation.

Total gross grew 39% twelvemonth implicit twelvemonth past 4th and is up 1,000% implicit the past 10 years. It is this maturation inflection -- and the prospects for continued tailwinds successful the assemblage -- that led Druckenmiller to marque Natera his largest banal position.

Is Natera banal a buy?

While Natera has been a bully victor for Druckenmiller implicit the past fewer years, the banal is up astir 100% implicit the past 12 months, driven by coagulated gross growth. Is it inactive a bargain today?

Right now, Natera trades astatine an expensive-looking price-to-sales (P/S) ratio of 15, which is importantly higher than the banal marketplace mean successful the United States. Investors similar Druckenmiller are rather optimistic astir this business's maturation prospects.