What a time it’s been for 10x Genomics. In the past six months alone, the company’s stock price has increased by a massive 73.9%, reaching $15.53 per share. This was partly thanks to its solid quarterly results, and the run-up might have investors contemplating their next move.
Is there a buying opportunity in 10x Genomics, or does it present a risk to your portfolio? Get the full breakdown from our expert analysts, it’s free for active Edge members.
Why Is 10x Genomics Not Exciting?
We’re happy investors have made money, but we're cautious about 10x Genomics. Here are three reasons there are better opportunities than TXG and a stock we'd rather own.
1. Lackluster Revenue Growth
We at StockStory place the most emphasis on long-term growth, but within healthcare, a stretched historical view may miss recent innovations or disruptive industry trends. 10x Genomics’s recent performance shows its demand has slowed significantly as its annualized revenue growth of 4.2% over the last two years was well below its five-year trend. 
2. Cash Burn Ignites Concerns
If you’ve followed StockStory for a while, you know we emphasize free cash flow. Why, you ask? We believe that in the end, cash is king, and you can’t use accounting profits to pay the bills.
While 10x Genomics posted positive free cash flow this quarter, the broader story hasn’t been so clean. 10x Genomics’s demanding reinvestments have consumed many resources over the last five years, contributing to an average free cash flow margin of negative 14.8%. This means it lit $14.79 of cash on fire for every $100 in revenue.
3. Previous Growth Initiatives Have Lost Money
Growth gives us insight into a company’s long-term potential, but how capital-efficient was that growth? A company’s ROIC explains this by showing how much operating profit it makes compared to the money it has raised (debt and equity).
10x Genomics’s five-year average ROIC was negative 50.7%, meaning management lost money while trying to expand the business. Its returns were among the worst in the healthcare sector.
Final Judgment
10x Genomics isn’t a terrible business, but it doesn’t pass our quality test. Following the recent rally, the stock trades at $15.53 per share (or a forward price-to-sales ratio of 3.3×). The market typically values companies like 10x Genomics based on their anticipated profits for the next 12 months, but it expects the business to lose money. We also think the upside isn’t great compared to the potential downside here - there are more exciting stocks to buy. Let us point you toward a dominant Aerospace business that has perfected its M&A strategy.
Stocks We Like More Than 10x Genomics
The market’s up big this year - but there’s a catch. Just 4 stocks account for half the S&P 500’s entire gain. That kind of concentration makes investors nervous, and for good reason. While everyone piles into the same crowded names, smart investors are hunting quality where no one’s looking - and paying a fraction of the price. Check out the high-quality names we’ve flagged in our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).
Stocks that have made our list include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.
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