The resurgence of COVID-19 cases across several parts of the world has been driving the diagnosis and research industry’s growth. Furthermore, according to the CDC, six in 10 Americans live with at least one…
chronic disease, such as heart disease, stroke, cancer, or diabetes. So, rising chronic disorders are expected to boost the industry’s prospects.
Also, the application of artificial intelligence (AI) in the industry is expected to drive further growth. According to a Grand View Research report, the use of AI in the diagnostics market is expected to grow at a 32.8% CAGR over the next seven years.
Given this backdrop, we think it could be wise to bet on fundamentally strong diagnostics and research stocks Agilent Technologies, Inc. (A – Get Rating), Mettler-Toledo International Inc. (MTD – Get Rating), Laboratory Corporation of America Holdings (LH – Get Rating), and Waters Corporation (WAT – Get Rating).
Operating for more than two decades, A functions primarily through Life Sciences and Applied Markets, the Diagnostics, Genomics, and the Agilent CrossLab segments. In addition, its life sciences and applied markets segment offer application-focused solutions, including instruments and software. A is based in Santa Clara, Calif.
A signed a worldwide distribution agreement with Visiopharm on September 2, enabling it to co-market Visiopharm’s portfolio of CE-IVD marked AI-driven precision pathology software. The agreement is expected to help expand the company’s product portfolio in the growing digital pathology market.
A’s net revenue increased 25.8% year-over-year to $1.59 billion in its fiscal third quarter, ended July 31, 2021. Its income from operations came in at $336 million, up 46.1% year-over-year. While its non-GAAP net income increased 38.7% year-over-year to $337 million, its non-GAAP EPS came in at $1.10, up 41% year-over-year.
Analysts expect A’s revenue and EPS to increase 18.4% and 31.4%, respectively, year-over-year to $6.32 billion and $4.31 in its fiscal year 2021. In addition, it has surpassed the consensus EPS estimates in each of the trailing four quarters. Over the past nine months, the stock has gained 45.2% in price to close yesterday’s trading session at $172.08.
A’s strong fundamentals are reflected in its POWR Ratings. The stock has an overall A rating, which indicates a Strong Buy in our proprietary rating system. The POWR Ratings assess stocks by 118 different factors, each with its own weighting.
A has a B grade for Value, Growth, Stability, Sentiment, and Quality. Within the Medical-Diagnostics/Research industry, it is ranked #2 of 58 stocks. Click here to see the additional POWR Rating for Momentum.
Note that A is one of the few stocks handpicked by our Chief Growth Strategist, Jaimini Desai, currently in the POWR Growth portfolio. Learn more here.
Columbus, Ohio-based MTD manufactures and supplies precision instruments and services, such as weighing instruments for laboratory, industrial, packaging, logistics, and food retailing applications. The company operates in five segments: U.S. Operations; Swiss Operations; Western European Operations; Chinese Operations; and Other.
MTD acquired PendoTECH in March 2021. PendoTECH is a manufacturer and distributor of single-use sensors, transmitters, control systems, and software for measuring, monitoring, and data collection primarily in bioprocess applications. Olivier Filliol, MTD’s President and CEO, said, “PendoTECH is an excellent strategic fit as it expands our offering to include various sensors, including pressure, which is an important and common control parameter in downstream and upstream bioprocess applications.”
MTD’s total revenues increased…
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