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Exclusive Content from MarketBeat The Often-Missed Corner of Healthcare That Wall Street Is LovingBy 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's $1 Quadrillion AI IPO
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 see 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" approach, focusing on companies that supply essential equipment and services rather than higher-risk pharmaceutical names. Lab equipment stocks are often overlooked, even though several companies in this subindustry rank among the largest in healthcare. With external forces likely to influence healthcare 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. Below are some major players worth a closer look. A Recent Dip Masks Thermo Fisher's Long-Term Strengths The $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) as the company recently fell into TradeSmith's red zone for financial health. Much of that recent weakness may stem from tariffs and FX volatility, which together squeezed margins by more than 100 basis points in 2025. There are, however, several encouraging signs in Thermo Fisher's recent performance. In Q4 2025, revenue of $12.2 billion rose 7% year-over-year (YOY), beating analyst estimates by about $250 million. Adjusted earnings per share (EPS) also topped expectations at $6.57. That momentum may reflect prominent recent product launches, including the Orbitrap Astral Zoom mass spectrometer and new bioreactor systems. Thermo Fisher's broad business model and diverse product portfolio should provide cushioning against external pressures. Even if 2026 guidance is modest—a 4% to 6% revenue increase—improving EBITDA margins and steady customer demand are tailwinds. That may explain why analysts remain largely favorable: 17 of 19 rate the stock 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 it in a position similar to Thermo Fisher. While 2026 guidance calls for modest core revenue growth of 3% to 6% YOY, the latest quarter included 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 due to strong monoclonal antibody demand, and diagnostics. Diagnostics should benefit from FDA clearances, and equipment orders have begun to rebound after a prolonged downturn, which could further support sales growth. Analysts are reasonably optimistic about DHR, forecasting about 12.3% earnings growth over the next year and roughly 35% upside in the share price. That optimism is reflected in ratings: 19 of 22 analysts rate DHR shares as Buy. Agilent's Biocare Purchase Could Be a Catalyst Agilent Technologies (NYSE: A) appears a bit behind its peers based on its latest earnings, which showed tepid 4.4% YOY revenue growth and narrow misses on both revenue and earnings versus expectations. However, Agilent may have a growth catalyst in its acquisition of Biocare Medical, which should strengthen its position in cancer diagnostics. Although Biocare's nearly $1 billion price tag was steep, the deal should provide Agilent a new source of recurring revenue in a growing market. Cancer diagnostics tends to be higher-margin than some of Agilent's existing businesses, which could help lift operating margins (24.6% in the most recent quarter). Despite a roughly 17% YTD decline, analysts see substantial upside potential—about 42%—and Wall Street classifies the stock as a Moderate Buy, with 13 of 16 ratings at Buy or equivalent. |