Index removals put 10x Genomics in focus for valuation minded investors

10x Genomics (TXG) was removed from several Russell value benchmarks on 27 June 2026, a shift that can influence trading as index tracking funds rebalance and active investors reassess the stock.

For you, the key question is whether these index changes simply alter who holds 10x Genomics stock or whether they also change how the market views the company at its recent price levels.

Even with the index removals in late June, 10x Genomics has seen strong momentum at its recent share price of US$39.01, with a 30 day share price return of 27.03% and year to date share price return of 134.72%, set against a 1 year total shareholder return of 199.85% but a weaker 3 and 5 year total shareholder return. This suggests recent enthusiasm has not fully repaired longer term losses.

If the Russell changes have you rethinking portfolio positioning, it can be useful to look beyond a single stock and scan other healthcare related growth stories using our screener for 40 healthcare AI stocks

So with 10x Genomics trading at US$39.01, carrying recent revenue growth but a loss of US$22.656 million and weaker 3 and 5 year returns, is this an overlooked opportunity or a stock already pricing in future growth?

Most Popular Narrative: 94% Overvalued

The most followed narrative currently anchors 10x Genomics at a fair value of about $20.14, well below the last close at $39.01. This puts a spotlight on the assumptions behind that gap.

The acquisition of Scale Biosciences broadens 10x Genomics' technical capabilities in single-cell analysis, allowing integration of foundational innovations like combinatorial indexing and quantum barcoding, which may accelerate innovation, reduce costs, and open up new high-value markets, positively impacting future revenue growth and margins.

Want to see what earnings trajectory and margin lift this story leans on? The core of this narrative is measured revenue growth, rising profitability, and a future earnings multiple that assumes investors still pay up for life science platforms. Curious which specific growth and margin steps have to fall into place to support that valuation path?

Result: Fair Value of $20.14 (OVERVALUED)

However, this 10x Genomics story also leans on assumptions that could crack if academic and government funding stays soft, and if price cuts continue to pressure margins.

Next Steps

With 10x Genomics carrying both risk flags and potential rewards, it may be useful to consider the situation promptly and weigh the trade off for yourself using the 1 key reward and 2 important warning signs.

Looking for more investment ideas beyond 10x Genomics?

If 10x Genomics has sharpened your interest in where capital goes next, do not stop here. Broaden your watchlist now using these focused stock ideas.

• Target resilient cash generators and steady returns by scanning companies in the 7 dividend fortresses that could complement higher risk growth positions.
• Hunt for quality at a sensible price by reviewing companies in the 43 high quality undervalued stocks that pair fundamentals with potential mispricing.
• Prioritise capital preservation by focusing on companies in the 75 resilient stocks with low risk scores that aim to keep balance sheets and risk scores in check.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.