Photo by Maxim Hopman on UnsplashNeoGenomics (NEO) is a small-cap provider of cancer genetics diagnostics. They boast one of the most comprehensive oncology-focused testing menus in the world to help physicians diagnose and treat cancer.NeoGenomics serves the needs of pathologists, oncologists, academic centers, hospital systems, pharmaceutical firms, integrated service delivery networks, and managed care organizations throughout the United States, and pharmaceutical firms in Europe and Asia.The company is growing sales this year over 12% to $570 million. And next year’s topline is projected to hit $620 million, for a 7.8% advance. With a $1.75 billion market cap, NEO trades under 3 times forward sales estimates.While NeoGenomics is not yet profitable, EPS estimates have been moving higher, with this year set to post a 55% increase to a loss of 25-cents and next year forecast to see another 66% rise to minus 9-cents. Small Global Player in Fast Growing MarketHeadquartered in Fort Myers, FL, NeoGenomics operates CAP accredited (Certified Analytics Professional) and CLIA certified (Clinical Laboratory Improvement Amendments) laboratories in Fort Myers and Tampa, Florida; Aliso Viejo, Carlsbad and San Diego, California; Research Triangle Park, North Carolina; Houston, Texas; Atlanta, Georgia; Nashville, Tennessee; and Phoenix, Arizona; and CAP accredited laboratories in Cambridge, United Kingdom; Rolle, Switzerland; and Singapore.In research screening for attractive long-term companies to add for my Healthcare Innovators (HI) portfolio, I found NeoGenomics to be a screaming buy near $11. In late September, I put the stock on my Top 10 List and advised HI members to buy between $10 and $11.Part of my enthusiasm about the stock was that it had sold off so dramatically from 52-week highs above $20 in May. And the cause of that selling was largely based around a broad FDA rule change concerning Lab Developed Tests (LDT) which was impacting the entire industry.During the market volatility of the first week of October, NEO shares dipped to $11.03 and then moved quickly higher, including a 9% surge on October 17.But I still liked the upside so much, I decided to make it an official buy for the portfolio and issued this Healthcare Innovators Buy Alert on October 19…NeoGenomics (NEO) : Buy between $13 and $14. We almost had our chance to buy under $11 the first week of October, but after reading some recent research on the LDT space, I think we can still jump on the big bull flag that popped up on Tuesday. NEO is a high-complexity CLIA-certified clinical laboratory that specializes in cancer genetics diagnostic testing, the fastest growing segment of the laboratory industry.The company’s testing services include cytogenetics, fluorescence in-situ hybridization, flow cytometry, morphology studies, anatomic pathology and molecular genetic testing. While only growing sales at about 10% to cross $600 million next year, it trades at a discount price/sales multiple and Piper Sandler has a $23 price target on shares with projections it should trade at 5X next year’s sales. FDA Oversight of Lab Developed Tests (LDTs)The FDA rule change that drove most diagnostic companies down since the summer concerns the idea that LDTs are increasingly risky, and may lead to inaccurate test results, or may not perform as well as FDA-cleared tests. The FDA is also concerned that these tests could lead to unnecessary treatments, or delay/forgo appropriate treatments.According to Piper Sandler analyst David Westenberg, after months of anticipation the FDA finally issued their updated position on LDTs on Sep 29. This explains the 1-month crash in these stocks. Although FDA plans on now having direct oversight over labs, the FDA will grandfather in most existing tests and the enforcement will not come until 2028.Westenberg thinks the late Sep announcement is largely in line with investors’ expectations, though the Piper team admits the FDA’s stance on regulatory intensity remains a bit ambiguous.While they recognize there might be a few added costs for companies getting into compliance in the next five years, Westenberg’s team thinks existing tests will mostly not be impacted. They reiterated their bullish calls on lab providers such as Guardant (GH), also in precision oncology screening, and Natera (NTRA), the provider of non-invasive prenatal genetic screening.Disclosure: I own NEO, GH, and NTRA shares for the Zacks Healthcare Innovators portfolio.More By This Author:Bear Of The Day: Illumina Bull of the Day: NVDABull Of The Day: Penumbra