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Wednesday's Exclusive Story The Often-Missed Corner of Healthcare That Wall Street Is LovingReported 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.
- Special Report: Have $500? Invest in Elon's AI Masterplan
The healthcare industry is notoriously volatile—company fortunes can be made or broken by a single product or the outcome 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 provide essential equipment and services rather than higher-risk pharmaceutical names. Lab equipment stocks are often overlooked by investors considering healthcare, despite some companies in this subindustry being among the sector's largest. Given the 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 be more appealing than usual. The companies below are major players worth a closer look for investors considering this industry. 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 falling more than 15% year-to-date (YTD) as the stock recently entered TradeSmith's red zone for financial health. Much of that weakness may reflect tariffs and foreign-exchange volatility, which together shaved over 100 basis points off margins in 2025. There are several bright spots in Thermo Fisher's recent performance. In Q4 2025, revenue rose 7% YoY to $12.2 billion, beating analyst estimates by about $250 million. Adjusted earnings per share (EPS) also topped expectations at $6.57. That momentum may reflect recent product launches, including the Orbitrap Astral Zoom mass spectrometer and new bioreactor offerings. Thermo Fisher's diversified business should help cushion it against external pressures. Even if 2026 guidance is modest, with revenue expected to grow 4% to 6% for the year, improving EBITDA margins and steady underlying customer demand are positive signs. This may explain why, despite the selloff, analysts remain bullish: 17 of 19 rate the stock 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 the instruments, consumables, and reagents firm in a similar position to Thermo Fisher. While 2026 guidance calls for modest core revenue growth of 3% to 6% YoY, the latest quarter showed 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, which is expected to deliver high-single-digit revenue growth driven by strong monoclonal antibody demand, and diagnostics. Diagnostics should benefit from recent FDA clearances, and equipment orders have begun to recover after a prolonged slump, which could further support sales growth. Analysts are reasonably optimistic on DHR, projecting about 12.3% earnings growth over the coming year and roughly 35% potential share-price upside. That optimism shows in the ratings mix: 19 of 22 analysts rate DHR shares a Buy. Agilent's Biocare Purchase Could Be a Catalyst Agilent Technologies (NYSE: A) appears a step behind the companies above. Its latest results showed tepid 4.4% YoY revenue growth and slight misses on both revenue and earnings versus expectations. However, Agilent may have a hidden growth driver 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 growing, higher-margin segment. Cancer diagnostics tend to be more profitable than some of Agilent's legacy operations and could help lift its operating margin (24.6% in the last quarter). Despite a roughly 17% YTD decline, analysts see about 42% upside for Agilent. Wall Street rates the stock a Moderate Buy overall, with 13 of 16 analysts giving Buy or equivalent ratings. |