GeneDx shares drop 65% since Nov but seen as a buy due to strong volume growth and undervaluation.

GeneDx (WGS) shares have fallen 65% since November after management lowered guidance for Q1 2026, mainly due to reduced reimbursement rates from a shift to genome testing. Despite this, testing volume grew 34% year-over-year, showing strong demand. The company holds one of the largest rare disease genomic databases, offering a competitive edge and potential for AI-driven growth. The reimbursement issue is viewed as temporary, with a fair value estimate of $85-90 per share by 2026 if rates stabilize.