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Exclusive Story from MarketBeat.com The Often-Missed Corner of Healthcare That Wall Street Is LovingBy Nathan Reiff. Originally 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's "Hidden" Company
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 register some of the market's wildest spikes and drops. Investors who want exposure to the healthcare space but are wary of that turbulence might adopt a "picks and shovels" strategy, focusing on companies that provide essential equipment and services to the industry rather than on higher-risk pharmaceuticals names. Lab-equipment stocks are often overlooked, even though some companies in this subindustry rank among the largest in healthcare. With a range of external factors that could affect healthcare companies in 2026—shifting subsidies, an aging population, inflation, and the growing role of AI—core lab-equipment names may be more appealing than usual. The companies below are some of the 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) had a difficult start to 2026, with shares down more than 15% year-to-date (YTD). The stock has also slipped into TradeSmith's red zone for financial health. A good portion of the recent weakness can be attributed to tariffs and FX volatility, which together trimmed margins by more than 100 basis points in 2025. There are, however, several bright spots in Thermo Fisher's recent performance. In Q4 2025, revenue of $12.2 billion rose 7% year-over-year (YOY), beating analyst forecasts by roughly $250 million. Adjusted earnings per share (EPS) also exceeded expectations at $6.57. That momentum may reflect several prominent product launches in recent months, including the Orbitrap Astral Zoom mass spectrometer and new bioreactor products. Thermo Fisher's broad portfolio and diversified customer base could provide significant cushion against external pressures. Even if 2026 guidance is modest—revenue is expected to rise 4%–6%—improving EBITDA margins and steady underlying demand are constructive. It may be why analysts remain bullish: 17 of 19 rate the company a Buy or equivalent, and consensus estimates suggest 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 as the instruments, consumables, and reagents firm navigates a similar backdrop to Thermo Fisher. 2026 guidance calls for modest core revenue growth of 3%–6% YOY, but the latest quarter included a top- and bottom-line beat and the company generated $5.3 billion in free cash flow for 2025. Two bright spots for 2026 include Danaher's bioprocessing business, which is expected to deliver high-single-digit revenue growth driven by strong monoclonal antibody demand, and its diagnostics segment. Diagnostics should benefit from recent FDA clearances, and equipment orders have begun to pick up after a prolonged weak period—an encouraging trend for future sales. Analysts are generally optimistic about DHR, projecting roughly 12.3% earnings growth in the year ahead and about 35% potential upside in the share price. That sentiment is reflected in the ratings: 19 of 22 analysts rate Danaher shares a Buy. Agilent's Biocare Purchase Could Be a Catalyst Agilent Technologies (NYSE: A) has lagged the peers above based on its latest results, which showed tepid 4.4% YOY revenue growth and slight misses on both revenue and earnings versus expectations. However, Agilent may have a hidden growth engine in its recent acquisition of Biocare Medical, which should strengthen its position in cancer diagnostics. Though the Biocare purchase price was sizable—nearly $1 billion—it should add recurring revenue in a high-growth area. Cancer diagnostics also tend to be higher-margin than some of Agilent's existing lines, which could help improve operating margins (which were 24.6% in the most recent quarter). Despite a roughly 17% decline YTD, analysts see substantial upside for Agilent, with consensus estimates implying about 42% potential upside. Wall Street's view is a Moderate Buy overall, with 13 of 16 ratings at Buy or equivalent. |