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Special Report The Often-Missed Corner of Healthcare That Wall Street Is LovingAuthored by 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.
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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 experience some of the market's largest spikes and drops. Investors who want exposure to the healthcare space but are wary of that volatility may adopt a "picks and shovels" approach—focusing on companies that provide essential equipment and services to the industry rather than higher-risk pharmaceutical names. Lab equipment stocks are often overlooked by healthcare investors, even though several 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, and the growing role of AI, among others—core lab-equipment names may look especially attractive. The companies below are some major players worth a closer look. A Recent Dip Masks Thermo Fisher's Long-Term Strengths BlackRock, JPMorgan, Goldman Sachs, and Fidelity are accumulating shares of one scarce resource - the fuel powering a new $382 trillion digital financial infrastructure. With $909 billion migrating onto these new digital rails every single day, demand is projected to climb 12,000% by April 2027. The Nasdaq has SEC approval to move stocks onto blockchain rails, and BlackRock CEO Larry Fink dedicated his entire 2026 annual letter to this shift. Veteran tech investor Andy Howard has identified the single asset positioned to power the entire grid - and the free ticker is available now. See the scarce asset behind the $382 trillion money grid today $182 billion life sciences solutions, diagnostics, and analytical instruments company Thermo Fisher Scientific (NYSE: TMO) has had a difficult start to 2026, with shares off more than 15% year-to-date (YTD) and the company recently falling into TradeSmith's red zone for financial health. Much of that weakness appears tied to tariffs and foreign-exchange (FX) volatility, which together pressured 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 estimates by roughly $250 million. Adjusted earnings per share (EPS) also topped expectations at $6.57. That momentum is likely helped by recent product launches, including the Orbitrap Astral Zoom mass spectrometer and new bioreactor offerings. Ultimately, Thermo Fisher's broad business mix could provide ample cushion against external pressures. Even if 2026 guidance is cautious—revenue is expected to grow about 4% to 6%—improving EBITDA margins and steady customer demand are meaningful tailwinds. This may explain why analysts remain largely positive: 17 of 19 analysts rate the company 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) shares are down nearly 20% YTD, placing it in a similar spot 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 notable strengths for 2026 are 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, in particular, should benefit from recent FDA clearances. Equipment orders have also begun to recover after a prolonged downdraft, which could further support sales growth. Analysts are reasonably optimistic about DHR, forecasting roughly 12.3% earnings growth over the next year and about 35% potential upside in the stock. That optimism is reflected in ratings: 19 of 22 analyst recommendations on DHR are Buys. 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 tepid 4.4% YOY revenue growth and small 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 Biocare's price tag approached $1 billion, the deal should add a recurring-revenue stream in a high-demand area. Cancer diagnostics can be higher-margin than many of Agilent's legacy operations and could help lift its operating margin (24.6% in the most recent quarter). Despite an approximate 17% YTD decline, analysts see about 42% upside for Agilent shares. Wall Street's view is a Moderate Buy overall, with 13 of 16 ratings at Buy or equivalent. |