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Further Reading from MarketBeat The Often-Missed Corner of Healthcare That Wall Street Is LovingSubmitted by Nathan Reiff. Publication Date: 3/29/2026. 
Key Points - Numerous lab equipment stocks are down in the high-teens so far this year, but seemingly modest sales growth may hide fundamental strengths.
- These companies can present a more secure approach to the healthcare industry than some higher-risk alternatives.
- Still, headwinds including tariff impacts and inflation remain a concern.
- Special Report: Elon's "Hidden" Company
The healthcare industry is notoriously volatile—company fortunes can turn on the success of a single product or the results of a clinical trial—and it's common for stocks in this sector to post some of the market's wildest spikes and drops. Investors who want exposure to the healthcare space but are wary of that turbulence may prefer a "picks and shovels" strategy, focusing on companies that supply essential equipment and services to the industry rather than higher-risk pharmaceutical names. Lab equipment stocks are often overlooked by investors, even though several companies in this subindustry rank among the largest in healthcare. With a range of external forces that could shape the industry in 2026—shifting subsidies, an aging population, inflation, the growing role of AI, and more—core lab-equipment names may be especially attractive. Below are some major players worth a closer look. A Recent Dip Masks Thermo Fisher's Long-Term Strengths After nearly five decades on Wall Street, Louis Navellier says a major currency shift is already underway - and the wealthiest Americans, including Musk, Zuckerberg, and Ellison, are quietly moving money out of dollars and into a different type of asset entirely. It's not bitcoin or any other crypto. Navellier has identified 7 companies he believes are positioned at the center of this trend - the last time he spotted a setup like this, Nvidia climbed as high as 10,000%. Watch Navellier's urgent briefing and get all 7 company names $182 billion life sciences solutions, diagnostics, and analytical instruments company Thermo Fisher Scientific (NYSE: TMO) has had a rough start to 2026, with shares off more than 15% year-to-date (YTD) and the company recently slipping into TradeSmith's red zone for financial health. Much of that weakness appears to stem from tariffs and FX volatility, which together shaved more than 100 basis points off margins in 2025. There are, however, several bright spots in Thermo Fisher's recent results. In Q4 2025, revenue of $12.2 billion rose 7% year-over-year (YOY), beating analyst estimates by roughly $250 million. Adjusted EPS also topped forecasts at $6.57. That momentum likely reflects recent product introductions, including the Orbitrap Astral Zoom mass spectrometer and new bioreactor offerings. Thermo Fisher's broad business mix and comprehensive product lineup should provide a cushion against external headwinds. Even if 2026 guidance looks modest—revenue is projected to climb 4% to 6%—improving EBITDA margins and steady customer demand are encouraging. This may explain why, despite the pullback, analysts remain upbeat: 17 of 19 rate the stock a Buy or equivalent, and consensus estimates imply more than 29% upside potential. Danaher's Business May Be Improving, Even as Guidance Remains Modest Danaher Corp. (NYSE: DHR) is down nearly 20% YTD as the instruments, consumables, and reagents firm faces a similar environment to Thermo Fisher. While 2026 guidance calls for modest core revenue growth of 3% to 6% YOY, the latest quarter included a top- and bottom-line beat and the company generated $5.3 billion in free cash flow in 2025. Two promising areas for 2026 are Danaher's bioprocessing business, expected to deliver high-single-digit revenue growth driven by strong monoclonal antibody demand, and diagnostics. Diagnostics should benefit from recent FDA clearances, and equipment orders have begun to recover after a protracted soft patch, which could further support sales. Analysts expect solid earnings growth—about 12.3% year-over-year—and roughly 35% potential share-price appreciation. That optimism is reflected in ratings: 19 of 22 analysts rate DHR shares a Buy. Agilent's Biocare Purchase Could Be a Catalyst Agilent Technologies (NYSE: A) appears to lag the peers above based on its latest results, which showed only 4.4% YOY revenue growth and slight misses on both revenue and earnings versus expectations. Still, Agilent may have a hidden growth engine in its recent acquisition of Biocare Medical, which strengthens its position in cancer diagnostics. Although the Biocare acquisition cost nearly $1 billion, it should add a recurring revenue stream in a fast-growing area. Cancer diagnostics can also carry higher margins than some of Agilent's legacy lines, which could help lift operating margins (Agilent's stood at 24.6% in the last quarter). Despite a roughly 17% YTD decline, analysts see potential upside of about 42% for Agilent. Wall Street rates the stock a Moderate Buy overall, with 13 of 16 analysts issuing Buy or similar ratings. |
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