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Special Report The Often-Missed Corner of Healthcare That Wall Street Is LovingAuthored 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.
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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 record some of the wildest spikes and drops across the market. Investors who want exposure to the healthcare space but are wary of that volatility may prefer a "picks and shovels" approach, focusing on companies that provide essential equipment and services rather than on higher‑risk pharmaceutical names. Lab-equipment stocks are often overlooked, despite some companies in this subindustry ranking among the largest players in healthcare. Given a range of external factors that could affect healthcare companies in 2026—shifting subsidies, an aging population, inflation, the growing role of AI, and more—core lab-equipment names may look more attractive than usual. The companies below are major players worth a closer look for investors considering this space. 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 difficult start to 2026, with shares down more than 15% year-to-date (YTD) as the company recently moved into TradeSmith's red zone for financial health. A significant portion of that sluggishness may stem from tariffs and foreign-exchange volatility, which together hurt margins by over 100 basis points in 2025. However, there are 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 may reflect several recent product launches, including the Orbitrap Astral Zoom mass spectrometer and new bioreactor offerings. Thermo Fisher's diverse business model should provide a cushion against external pressures. Even if 2026 guidance is tepid—revenues are expected to climb 4%–6%—improving EBITDA margins and steady customer demand are positive signs. That may explain why analysts remain favorable on TMO: 17 of 19 rate the company a Buy or equivalent, and consensus estimates suggest 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 the instruments, consumables, and reagents firm in a position similar to Thermo Fisher. Although 2026 guidance calls for modest core revenue growth of 3%–6% YOY, that outlook may mask solid recent results, including a top- and bottom-line beat in the latest quarter and $5.3 billion in free cash flow for 2025. Two notable bright spots for 2026 are Danaher's bioprocessing business—expected to deliver high-single-digit revenue growth driven by strong monoclonal antibody demand—and its diagnostics segment. Diagnostics should benefit from FDA clearances, and equipment orders have begun to recover after a prolonged slump, which could further support sales growth. Analysts are fairly optimistic on DHR, forecasting roughly 12.3% earnings growth in the year ahead and about 35% potential share-price upside. That sentiment may help explain why 19 of 22 analyst ratings on DHR are Buys. Agilent's Biocare Purchase Could Be a Catalyst Agilent Technologies (NYSE: A) has lagged the companies above based on its latest earnings, which showed only 4.4% YOY 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 Biocare cost nearly $1 billion, the deal should add recurring revenue in a growing, higher-margin area of demand. That could help lift Agilent's operating margin, which was 24.6% in the most recent quarter. Despite about a 17% YTD decline, analysts see roughly 42% upside for Agilent. Wall Street rates the stock a Moderate Buy overall, with 13 of 16 analysts assigning a Buy or similar rating. |