California-based medical device maker Fulgent Genetics (FLGT) specializes in clinical diagnostic genetic sequencing, and was at the forefront of the coronavirus pandemic thanks to its RT-PCR COVID-19 test, notes Matthew Timpane, technical expert and editor at Schaeffer's Investment Research.

While hopefully the pandemic is firmly put in the rearview mirror for 2021, FLGT should still be on your radar as your prep your investing strategy for the next year and beyond.

After spending the last four months in a consolidating pattern, Fulgent Genetics stock looks ready to break out from an ascending triangle to fresh all-time highs.

FLGT's recent pullbacks were contained by its 40-day moving average, while breathers back to the 20-week moving average also presented numerous buying opportunities throughout 2020.

Yes, the equity ended the year up a sizable 301%, but the company's conservative balance sheet still makes it undervalued compared to its peers in the medical device industry.

FLGT

Tailwinds on the charts could come from an exodus of short-sellers. Short interest is down 12.3% in the most recent reporting period, rolling over from all-time high levels.

However, a healthy 23.1% of FLGT's total available float is still sold short, an ample amount of buying power that could hit the market and fuel an unwind.

There's a lot more to unpack regarding FLGT and COVID-19 testing. Many analysts regard Fulgent's kits as temporary with multiple vaccines on the way.

Yet even amid an efficient vaccine rollout – and we're a ways from that – COVID-19 testing will likely remain a key component of healthcare for the next few years. It might be sobering to come, but pandemics are rarely neatly eradicated within a year.

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Fulgent is well-equipped to handle the volume though. It's expected to outpace rival Co-Diagnostics (CODX) by up to 30% in total revenues in 2020, and was able to scale its test and up the headcount growth, while still inching margins up by 8%. These are encouraging numbers that could directly impact FLGT’s trajectory on the charts.

Beyond COVID-19, genetic testing is here to stay. Fulgent's core genetics testing division grew by 52%, far exceeding sector peers InVitae (NVTA), Illumina (ILMN), and Natera (NTRA).

This means that even if the coronavirus pandemic becomes quickly under control, FLGT can still hang its hat on core genetic testing.

Fulgent offers 18,000 genetic tests — thousands more than the competition — and considering medical panels collectively screen for around 5,700 genetic conditions; it's not unreasonable to suggest FLGT stock could benefit if the company continues to cement its position at the forefront of genetics testing.

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