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Today's Bonus Story The Often-Missed Corner of Healthcare That Wall Street Is LovingAuthored by Nathan Reiff. Published: 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 Musk already made me a "wealthy man"
The healthcare industry is notoriously volatile—company fortunes can be made or broken on the success of a single product or the results of a clinical trial—and it's not uncommon for stocks in this sector to produce some of the wildest spikes and drops across the market. 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 pharmaceuticals names. Lab equipment stocks are often overlooked by healthcare investors, even though some companies in this subindustry rank among the largest in the sector. With a range of external factors that could affect healthcare in 2026—shifting subsidies, an aging population with greater needs, inflation, the growing role of AI, and more—core lab equipment names may look especially attractive. Below are some major players worth a closer look. A Recent Dip Masks Thermo Fisher's Long-Term Strengths $182 billion life sciences solutions, diagnostics, and analytical instruments company Thermo Fisher Scientific (NYSE: TMO) has had a challenging start to 2026, with shares down more than 15% year-to-date (YTD) and the company recently slipping into TradeSmith's red zone for financial health. Much of the recent weakness appears tied to tariffs and foreign-exchange volatility, which together reduced margins by more than 100 basis points in 2025. Still, there are 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 earnings per share (EPS) also topped forecasts at $6.57. That momentum may reflect a string of recent product launches, including the Orbitrap Astral Zoom mass spectrometer and new bioreactor offerings. Thermo Fisher's broad business mix and diversified product portfolio should help cushion the company against external pressures. Even if guidance for 2026 is modest—revenue is expected to increase 4% to 6%—improving EBITDA margins and steady customer demand are positive offsets. Analysts remain bullish: 17 of 19 rate the company a Buy or equivalent, and consensus estimates imply more than 29% upside. Danaher's Business May Be Improving, Even as Guidance Remains Modest Danaher Corp. (NYSE: DHR) shares are down nearly 20% YTD, placing the instruments, consumables, and reagents firm in a similar situation to Thermo Fisher. While 2026 guidance calls for modest core revenue growth of 3% to 6% YOY, the most recent quarter included both a top- and bottom-line beat and $5.3 billion in free cash flow for 2025. Two bright spots for 2026 are Danaher's bioprocessing business, expected to deliver high-single-digit revenue growth as monoclonal antibody demand remains strong, and its diagnostics segment. Diagnostics should benefit from recent FDA clearances, and equipment orders appear to be improving after a prolonged weak period—both trends that could support sales growth. Analysts are reasonably optimistic about DHR, forecasting about 12.3% earnings growth in the coming year and roughly 35% potential share-price appreciation. Reflecting that sentiment, 19 of 22 analyst ratings for DHR are Buys. Agilent's Biocare Purchase Could Be a Catalyst Agilent Technologies (NYSE: A) has trailed some peers based on its latest earnings, which showed tepid 4.4% YOY revenue growth and slight misses on both revenue and earnings versus expectations. However, Agilent may have a promising growth driver in its recent acquisition of Biocare Medical, which strengthens the company's position in cancer diagnostics. Although the Biocare purchase cost nearly $1 billion, it should add a source of recurring revenue in a high-growth area. Cancer diagnostics can also carry higher margins than some of Agilent's existing lines, which could help support operating-margin expansion (Agilent's operating margin was 24.6% in the last quarter). Despite a roughly 17% YTD decline, analysts see significant upside—about 42%—and Wall Street rates the stock a Moderate Buy overall, with 13 of 16 ratings at Buy or similar. |