Exelixis (EXEL) is back in focus after the U.S. Food and Drug Administration accepted its New Drug Application for zanzalintinib plus atezolizumab in previously treated metastatic colorectal cancer, supported by phase 3 overall survival data.

The NDA news comes as Exelixis trades at US$42.59, with recent 1 month and year to date share price returns slightly negative. However, a 90 day share price return of 5.5% sits alongside a 1 year total shareholder return of 28.59%, highlighting performance over a longer period that differs from recent softness.

If oncology news like this has your attention, it may be a good moment to scan other healthcare stocks that could fit your watchlist next.

With the shares at US$42.59, trading only modestly below the average analyst price target and screens flagging a high intrinsic discount, investors now have to ask whether there is real value left here or if the market is already pricing in future growth.

Most Popular Narrative: 6.6% Undervalued

Compared with Exelixis's last close at $42.59, the most followed narrative points to a fair value of $45.61, using a 7.08% discount rate to weigh future cash flows.

The company's substantial free cash flow, strong balance sheet, and disciplined capital allocation (including aggressive share repurchases and prioritization of high-probability, high-value R&D programs) position Exelixis to invest in next-generation discovery and strategic partnerships, which has the potential to improve operating leverage and net margins over time as the product portfolio scales.

Curious what sits behind that fair value gap? The narrative focuses on compound earnings, margin uplift, and a lower future P/E than many peers have historically received.

Result: Fair Value of $45.61 (UNDERVALUED)

However, that gap can close quickly if cabozantinib faces faster than expected erosion or if key zanzalintinib trials fail to translate into approvals.

Build Your Own Exelixis Narrative

If this view does not quite fit how you see the story, you can weigh the same data, set your own assumptions, and build a custom thesis in just a few minutes with Do it your way

A great starting point for your Exelixis research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.

Looking for more investment ideas?

If Exelixis is on your radar, do not stop there. A few minutes with the right screeners can open up opportunities you might regret missing later.

• Target dependable income by scanning these 13 dividend stocks with yields > 3% that focus on companies sharing more of their cash flows with shareholders.
• Spot emerging themes in medicine and algorithms by checking out these 108 healthcare AI stocks shaping the future of care and diagnostics.
• Lean into potential mispricing by reviewing these 873 undervalued stocks based on cash flows that current models flag as trading below estimated cash flow value.

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.