Shares of 10x Genomics, Inc. (TXG) soared by 5.04% on Thursday, October 11, 2024, as investors remained optimistic about the company's growth prospects despite a weaker-than-expected revenue guidance for the third quarter.

The stock rally came after an analysis by Simply Wall St highlighted that TXG's price-to-sales ratio had returned to a level more in line with the broader life sciences industry. The report noted that TXG's revenue growth has outpaced the industry average, with a 56% increase over the past three years, including an 11% rise in the previous year.

While analysts expect TXG's revenue growth to moderate to 8.6% annually over the next three years, this figure is still slightly higher than the industry's projected growth rate of 7%. According to the report, investors appear comfortable with TXG's valuation and growth trajectory, as reflected in the stock's price-to-sales ratio.

However, TXG also announced on Thursday that its third-quarter revenue is expected to be around $151.7 million, down 1% from the year-ago period. This weaker-than-expected guidance initially weighed on the stock, but investors ultimately focused on the company's overall growth potential and reasonable valuation.