GXDX provides diagnostic services to community based oncologists and hematologist treating blood, bone marrow and other cancers. This business has been amazing for this company as the fundamentals have many mutual funds wanting to load up on this stock. That is why we have seen ownership grow from 27 funds last quarter to 42 funds in the most recent quarter.

This sort of accumulation with a management owning 46% of the shares outstanding is a severe confirmation of future price gains.

GXDSX has had some incredible recent quarterly EPS growth of 200%, 388%, 540%, 999% and 325% the past five quarters. On top of that current growth we have EPS estimates for 2008 and 2009 for YOY growth of 18% and 4% respectively.

Along with the incredible earings, the sales growth are doubly impressive with growth o f417%, 340%, 264%, 166%, 165%, 134%, 137%, and 109% the past eight quarters. This kind of sales growth with earnings growth will continue to find buyers on every pullback. I am also sure by the end of the year that mutual fund ownership will be over 100 funds.

For those that are interested in the P/E ratio, you can rest assured that the 29 P/E ratio is in the middle end of the 18-42 5-year range. With those kind of earnings, sales, ROE, and cash flow, the P/E could be 100 and I would still be a buyer of this stock.

IBD confirms the strength, with the EPS coming in with a n 80 rating, the Relative Strength rating of 91, a group RS rating of 70, a Sales+Margins+ROE rating of A, and Acc/Dis rating of B, a composite rating of B, and a mutual fund sponsorship rating of a D.

This is by far one of the best IPO’s out there in the medical community and a buy right here off the 50 day moving average gives us an excellent entry to an excellent stock that is sure to make investors with a long-term investment horizon a lot of money.

At the time of publication, Joshua did not have a position in Genoptix Inc. (GXDX)

Last 5 posts by Joshua Hayes

• Following Through on Friday's Gains Stocks Stage Another Rally on Strong Volume - June 2nd, 2009
• Small Cap and IBD Indexes Lag the Major Indexes with Volume Higher Across the Board - May 29th, 2009
• Are Items That Fill Up Your House too Expensive? Then Rent Them at Aarons Inc. - May 27th, 2009
• Finally We Have The IBD Indexes Leading The Way As Stocks Rally On Heavier Trade - May 27th, 2009
• Ending in Mixed Fashion Stocks Fail to Close Out With Gains Seen Earlier in the Session; IBD Indexes Take the Lead - May 20th, 2009