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Monday's Featured Story The Often-Missed Corner of Healthcare That Wall Street Is LovingSubmitted by Nathan Reiff. Posted: 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: Have $500? Invest in Elon's AI Masterplan
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 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" approach, focusing on companies that supply essential equipment and services rather than higher-risk pharmaceutical names. Lab equipment stocks are often overlooked by investors in healthcare, even though several companies in this subindustry rank among the largest in the sector. With a range of external factors potentially affecting healthcare in 2026—shifting subsidies, an aging population, inflation, the growing role of AI, and more—core lab equipment names could be particularly 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 rough start to 2026, with shares down more than 15% year-to-date (YTD) and recently falling into TradeSmith's "red zone" for financial health. A significant portion of that weakness appears attributable to tariffs and foreign-exchange volatility, which together trimmed margins by more than 100 basis points in 2025. That said, there are several positive signs in Thermo Fisher's recent results. In Q4 2025, revenue rose 7% year-over-year to $12.2 billion, beating analyst estimates by roughly $250 million. Adjusted earnings per share (EPS) also topped forecasts at $6.57. Part of the momentum may stem from recent product launches, including the Orbitrap Astral Zoom mass spectrometer and new bioreactor systems. Thermo Fisher's broad product mix and diversified customer base should help cushion the company against external pressures. Even if 2026 guidance is conservative—revenue is expected to grow 4% to 6%—improving EBITDA margins and persistent customer demand provide constructive tailwinds. That outlook helps explain why analysts remain largely bullish: 17 of 19 rate TMO a Buy or equivalent, and consensus estimates imply roughly 29% upside. Danaher's Business May Be Improving, Even as Guidance Remains Modest Danaher Corp. (NYSE: DHR) shares are down nearly 20% YTD, putting the company in a similar short-term position to Thermo Fisher. While 2026 guidance calls for modest core revenue growth of 3% to 6% year-over-year, the latest quarter showed a top- and bottom-line beat and the company generated $5.3 billion in free cash flow for 2025. Two potential growth drivers in 2026 are Danaher's bioprocessing business—expected to deliver high-single-digit revenue growth, driven by strong monoclonal antibody demand—and its diagnostics operations. Diagnostics should benefit from recent and pending FDA clearances, while equipment orders have begun to recover after a prolonged weak period, supporting near-term sales growth. Analysts are reasonably optimistic on DHR, forecasting about 12.3% earnings growth and roughly 35% upside in the share price. That optimism is reflected in ratings: 19 of 22 analysts rate DHR a Buy. Agilent's Biocare Purchase Could Be a Catalyst Agilent Technologies (NYSE: A) looks a step behind the peers above based on its latest results, which showed only 4.4% year-over-year revenue growth and slight misses on both revenue and earnings versus expectations. Still, Agilent may have a growth catalyst in its recent acquisition of Biocare Medical, which should strengthen its position in cancer diagnostics. Although the Biocare deal cost nearly $1 billion, it should add recurring revenue in a high-growth, higher-margin area. That could help lift Agilent's operating margin, which stood at 24.6% in the most recent quarter. Despite a roughly 17% YTD decline, analysts see substantial upside—about 42%—for Agilent shares. Wall Street's consensus is a Moderate Buy, with 13 of 16 ratings at Buy or equivalent. |