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When InvestingPro’s Fair Value model identified NeoGenomics (NASDAQ:NEO) as significantly undervalued on July 31, 2025, few could have predicted the dramatic surge that would follow. The healthcare diagnostics company’s stock has delivered a remarkable 65% return in just over two months, demonstrating the power of data-driven valuation analysis. For investors seeking similar opportunities, InvestingPro’s Most undervalued list continues to identify potentially mispriced stocks across markets.
NeoGenomics, a leading provider of cancer-focused genetic testing services, was trading at $4.84 when InvestingPro’s models flagged a significant disconnect between the company’s market price and intrinsic value. Despite generating substantial revenue of $689.19 million, the company’s stock had experienced considerable volatility in the preceding months, creating an attractive entry point for value-focused investors.
The Fair Value analysis proved prescient when NeoGenomics secured a major victory in patent litigation against a competitor in August 2025. This catalyst, combined with the company’s strong market position and growing demand for diagnostic services, drove the stock to its current price of $7.98. The rally prompted multiple analyst upgrades, with Needham raising its price target to $14 and Stephens increasing its target to $11, validating InvestingPro’s early identification of the stock’s potential.
InvestingPro’s Fair Value methodology combines multiple valuation approaches, including discounted cash flow analysis, comparable company metrics, and market-based factors. This comprehensive approach helped identify NeoGenomics’ undervaluation despite its negative EBITDA of -$7.78 million, recognizing the company’s strategic positioning and growth potential in the expanding healthcare diagnostics market.
The success of this Fair Value call exemplifies the advantage of combining sophisticated valuation models with timely market analysis. While past performance doesn’t guarantee future results, InvestingPro’s track record in identifying mispriced securities continues to provide valuable insights for investors. Learn more about InvestingPro to access Fair Value analyses, real-time alerts, and comprehensive financial data that can help you identify tomorrow’s potential market opportunities.