This Stock Could Double in 3 Years

While tinkering with genetics might sound like something out of a science-fiction thriller, some companies are actually using it to create life-changing treatments.

And our best tech stock to buy today comes from this groundbreaking new industry.

The company we’re talking about specializes in next-generation sequencing (NGS), which refers to the accurate, rapid, and affordable analysis of genomes.

This a new development in the world of DNA manipulation and a substantial upgrade from what first-generation sequencing did.

Fred Sanger created first-generation sequencing when he mapped the whole DNA genome in 1977.

Since then, the Human Genome Project has been ongoing, and advances in technology have created automatic sequencing machines and greater potential to use genetics to address some of the most complex issues of our time.

Scientists in September were able to use newly developed methods to alter the genetics of the offspring of common pigeons. They inserted the DNA of the passenger pigeons, which effectively brought back a species that had become extinct in 1914.

But the NGS technology has even more profound possibilities for us. The idea is that this type of technology can help eliminate and cure diseases like Alzheimer’s and even cancer.

That also means it has incredible profit potential for investors who know which gene-editing stocks to buy. In fact, by investing in this technology, you aren’t just making money, you’re helping develop life-saving treatments.

In 2015, the NGS market had a value of $4.62 billion. Grand View Research expects that figure to skyrocket to $21.4 billion by 2025, a gain of 362%.

And to help you find the best tech stock to buy in this exciting new space, we’ve turned to an expert.

Money Morning Defense and Tech Specialist Michael Robinson boasts 30 years’ experience in the tech industry and has a Rolodex packed with Silicon Valley CEO contacts.

With the NGS market having triple-digit projected growth over the next seven years, Robinson advises that investors can take advantage of this booming market with one top tech stock that has the potential to double in value…

The Best Tech Stock to Buy Today in the Booming NGS Market

Robinson says the best stock to own in this sector is Illumina Inc. (NASDAQ: ILMN), which is something he refers to as a “pick and shovel” play.

Instead of directly investing in a company that does gene editing, a pick-and-shovel play involves investing in a company that supplies equipment to this massive industry. This helps mitigate the risk of investing directly in unproven gene-editing companies, while retaining the growth potential the industry offers. It’s a win-win.

The San Diego–based healthcare, diagnostics, and research company provides technology solutions for genetic analysis. Specifically, the company develops and delivers various applications and equipment to researchers that allow for detailed genetic sequencing.

Illumina was founded in 1998 and currently employs about 6,200 full-time staff.

The company also makes available a variety of sequencing kits and library preparation items that accelerate analysis and simplify workflows and genome sequencing. It serves academic institutions, genomic research centers, hospitals, government and pharmaceutical labs, and consumer genomics companies.

Illumina distributes and markets its products through life-sciences distributors as well as directly to its customers. It operates throughout North America, Latin America, Europe, the Middle East, South Africa, and the Asia-Pacific region.

It also has a strategic partnerships with Loxo Oncology, Inc. (NASDAQ: LOXO) and Bristol-Myers Squibb Co. (NYSE: BMY).

On Nov. 1, Illumina announced that it was purchasing another genomics company, Pacific Biosciences of California, Inc. This peer takeover cost the company $1.2 billion and is expected to be completed sometime in 2019.

Pacific Biosciences has recently announced new enhancements to its Sequel System, which is the company’s flagship DNA-sequencing platform.

One of the things that makes Illumina a profitable investment is that there is a strong demand for its products and services.

This a $45 billion company whose share price has tripled in the past five years. And that doesn’t mean that all of its gains are in the past. There are still plenty more to come for new shareholders.

You see, more and more companies are rushing to making genome-related breakthroughs, and this increases the need for this company’s equipment. In the coming years, Illumina will see its revenue soar.

Thanks to the recent acquisition of Pacific Biosciences, Illumina now has a dominant share of this fast-growing market.

In Q3 alone, the company’s revenue was $853 million, a 20% increase year over year. Earnings per share soared 74% in the most recent quarter. The company expects 20% revenue growth for its fiscal year 2018.

ILMN shares currently trade at $339.25. Analysts at Cowen & Co. gave a 12-month price target of $400, which represents a gain of 18%.

However, based on the earnings-per-share growth rate, Robinson believes that the current share price could double in three years.

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Source: Money Morning