Stanley Druckenmiller of the Duquesne Family Office is a brilliant investor who’s not afraid to make big, bold bets in names he really believes in.
In the latest 13F filing, which showed the public the buys and sells made by the big money managers in the first quarter, it was revealed that Druckenmiller trimmed a tiny bit of his top holding, Natera (NASDAQ:NTRA | META Price Prediction). Despite the slight trim, the genetic testing firm remained the largest position in the Duquesne portfolio, comprising just shy of 16%.
Over the past year, NTRA stock has been on quite a run, gaining more than 50%. And while it’s difficult to tell if it’s time to join the likes of Druckenmiller in the name with shares just 5% shy of hitting new all-time highs, I do think that the lesser-known $22.8 billion genomics play remains an intriguing growth option for investors comfortable with elevated levels of volatility.
Natera is an intriguing (though unprofitable) growth play that many Wall Street analysts are fond of
Natera’s path forward may be clouded by uncertainty, but the high double-digit percentage growth potential of its cutting-edge tech and growing lineup of products, I believe, makes it a worthy addition for younger growth-minded investors, even on strength. Of course, it’d be best to wait around for the next market-wide pullback before pouring a considerable sum into the name.
At this juncture, Natera is not yet profitable, but it’s on the right financial track, as the firm reached cash flow positivity in the first quarter of 2025. Also, some big-name analysts such as those at RBC Capital Markets have praised the biotech firm as a “maker leader” in the liquid biopsy market, which bodes well for its earnings growth trajectory over the medium term.
Natera isn’t just a leader in an emerging market, though; it’s a firm that stands to benefit greatly from a “first mover advantage,” according to the analyst team over at RBC Capital. Notably, they’re bullish on the firm’s expansion potential in “adjacent Screening and Selection sectors of oncology liquid biopsy.”
That’s huge for such a disruptive innovator that’s gone under the radar of most other growth investors.
What about valuation?
Looking at the valuation, shares of NTRA don’t look all too expensive, with an 11.2 times price-to-sales (P/S) multiple at the time of this writing. Of course, there’s no price-to-earnings (P/E) multiple to go by yet. But given its impressive product pipeline spanning oncology, organ health, and women’s health, I’d not dare bet against NTRA stock as it nears another one of its big breakout moments.
If there’s a stock that can grow into its somewhat hefty multiple, it’s Natera. The company seems to have a durable competitive advantage in a genetic testing market that just doesn’t have all too much in the way of competition. Given this, the up-and-comer may have an economic moat that’s wide enough to protect what could be a rapidly swelling cash flow stream.
Perhaps the most promising product in the pipeline is the Signatera test, which has shown tremendous promise at detecting tiny pieces of cancer DNA in blood. With cancer rates surging around the world, early detection is key. And Natera may have one of the front-row seats to such a booming market.
The bottom line
In short, Natera is a very promising genomics play and high-growth name that should not go ignored as the $170 level is retested. Though I wouldn’t rush into the name here, I would view Druckenmiller’s investment as a huge vote of confidence.
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