In this article, we discuss 10 best scientific instruments stocks to buy. If you want to see more stocks in this selection, check out 5 Best Scientific Instruments Stocks To Buy.
Scientific instruments are tools used to measure, record, and indicate physical quantities, aiding in scientific research and new product development. These instruments are designed to accomplish theoretical research and can be used to measure, analyze, and verify the properties of materials and elements. Scientific instruments play a crucial role in developing new products and improving existing ones. As per Data Bridge Market Research, the scientific instruments market is predicted to increase from $41.13 billion in 2022 to $58.05 billion by 2030, experiencing a compound annual growth rate (CAGR) of 4.4% between 2023 and 2030.
According to the latest report by IMARC Group, the global market is being driven by the increasing emphasis on R&D in developing new products and the growing collaboration between governments and manufacturers to improve the effectiveness of scientific instruments. The growth of testing and research facilities in biotechnology and pharmaceuticals, along with heavy investments in the healthcare sector by many countries, is also contributing to market growth. Additionally, the rising demand for generics and biosimilars, and pharmaceutical companies’ focus on improving drug development processes and product quality, is driving the demand for high-quality scientific instruments. The market is further boosted by the growing need for better analysis equipment and the rapid advancements in neuroscience and applied microbiology.
Allied Market Research has categorized the global scientific instruments market into different segments. The firm stated that the clinical analyzers segment is expected to generate the highest revenue during the forecast period from 2021 to 2030, driven by the increasing adoption of point of care testing devices and laboratory automation, and the rise in chronic conditions that require clinical analyzers for diagnosis. Moreover, the research segment is expected to experience the fastest compound annual growth rate due to the rising demand for scientific instruments in the research of chronic conditions such as cardiovascular diseases, cancer, and neurological diseases, and the development of advanced instruments for research purposes. Lastly, the hospitals & diagnostic laboratories segment is the dominant end-user segment, driven by the escalating number of outpatients and inpatients in hospitals, and the adoption of newer methods and advanced instruments for research purposes in diagnostic laboratories.
To benefit from the growth opportunities in the scientific instruments market, investors can pick up stocks like Thermo Fisher Scientific Inc. (NYSE:TMO), Agilent Technologies, Inc. (NYSE:A), and Danaher Corporation (NYSE:DHR).
Our Methodology
We scanned Insider Monkey’s database of 943 hedge funds and picked the top 10 companies that operate in the scientific instruments sector with the highest number of hedge fund investors. These are the best scientific instruments stocks to buy according to hedge funds.
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Best Scientific Instruments Stocks To Buy
10. Mirion Technologies, Inc. (NYSE:MIR)
Number of Hedge Fund Holders: 28
Mirion Technologies, Inc. (NYSE:MIR) offers a range of products and services related to the detection, measurement, analysis, and monitoring of radiation. The company is divided into two main segments – Medical and Industrial, each focusing on specific areas of expertise. Mirion Technologies, Inc. (NYSE:MIR) serves a wide range of customers including healthcare facilities, research laboratories, military organizations, government agencies, industrial companies, power and utility companies, reactor design firms, and nuclear power plants. On May 3, the company reported a Q1 GAAP EPS of -$0.22 and a revenue of $182.1 million, up 11.6% year-over-year and beating estimates by $2.90 million.
On February 15, Citi analyst Andrew Kaplowitz raised the firm’s price target on Mirion Technologies, Inc. (NYSE:MIR) to $11 from $10 and maintained a Buy rating on the shares following the “solid” Q4 results. Kaplowitz considers Mirion’s initial 2023 guidance to be both cautious and promising, suggesting a continued growth trajectory for the company.
According to Insider Monkey’s fourth quarter database, 28 hedge funds were long Mirion Technologies, Inc. (NYSE:MIR), compared to 26 funds in the prior quarter. Anand Parekh’s Alyeska Investment Group is the largest stakeholder of the company, with 7.7 million shares worth $51.2 million.
Like Thermo Fisher Scientific Inc. (NYSE:TMO), Agilent Technologies, Inc. (NYSE:A), and Danaher Corporation (NYSE:DHR), Mirion Technologies, Inc. (NYSE:MIR) is one of the best scientific instruments stocks to invest in.
Here is what Baron Growth Fund has to say about Mirion Technologies, Inc. (NYSE:MIR) in its Q4 2021 investor letter:
“This quarter, the Fund initiated a position in Mirion Technologies, Inc., a leader in ionizing radiation detection and measurement technologies to the medical, laboratory, and nuclear power industries. The business consists of a portfolio of niche, mission-critical products that represent a small portion of a project’s costs but can cause extensive collateral damage if they fail. Products include dosimeters that monitor radiation levels of medical professionals, quality assurance equipment and software for nuclear medicine treatments, and instrumentation and equipment that is core to the construction, operation, and decommissioning of nuclear power plants.
We think that Mirion has the potential to be a compelling industrial compounder. The company is already the largest player in over 80% of its end markets, and in aggregate is approximately 3.5 times larger than its nearest competitor. We estimate that Mirion’s end markets should grow at 5% to 6% annually, driven by favorable secular trends and a consistent replacement cycle. We expect Mirion to grow in line with or ahead of its end markets on an organic basis, as it leverages its scale advantage to take modest market share. Organic growth should be complemented by Mirion’s successful acquisition strategy, driving aggregate growth into the double digit range. In addition, we believe the company has an opportunity to expand markets by 500 bps-plus of margin over time through a favorable mix shift, higher utilization rates, and ongoing M&A synergy realization.
We believe that Mirion boasts a capable and accomplished senior management team. CEO Tom Logan has been with the company since 2005 and has led the strategy that has grown Mirion’s revenues from $123 million at inception to approximately $700 million currently. The new chairman of Mirion, Larry Kingsley, has a strong history of shareholder value creation as the former CEO of industrial technology leaders Pall Corporation and IDEX Corporation. We think his expertise will be well utilized as Mirion embarks on its next stage of growth.”
9. Fortive Corporation (NYSE:FTV)
Number of Hedge Fund Holders: 33
Fortive Corporation (NYSE:FTV) specializes in the design, development, manufacturing, marketing, and servicing of professional and engineered products, software, and services. Fortive Corporation (NYSE:FTV)’s Intelligent Operating Solutions segment focuses on providing advanced instrumentation such as electrical test and measurement tools. These offerings cater to a wide range of industries such as manufacturing, process industries, healthcare, utilities and power, communications, electronics, and others. It is one of the best scientific instruments stocks to invest in.
On April 26, Fortive Corporation (NYSE:FTV) reported a Q1 non-GAAP EPS of $0.75 and a revenue of $1.46 billion, outperforming Wall Street estimates by $0.02 and $40 million, respectively.
JPMorgan analyst Stephen Tusa raised the firm’s price target on Fortive Corporation (NYSE:FTV) on April 27 to $78 from $77 and maintained an Overweight rating on the shares. The analyst informed investors that Fortive reported better-than-expected results for Q1, surpassing expectations in terms of organic growth and margins. As a result, the analyst has raised estimates to reflect the company’s strong performance at the beginning of the year.
According to Insider Monkey’s fourth quarter database, 33 hedge funds were bullish on Fortive Corporation (NYSE:FTV), compared to 29 funds in the prior quarter. Phill Gross and Robert Atchinson’s Adage Capital Management is the largest stakeholder of the company, with 4.48 million shares worth $288.3 million.
Cooper Investors made the following comment about Fortive Corporation (NYSE:FTV) in its Q4 2022 investor letter:
“Fortive Corporation (NYSE:FTV) completed several acquisitions and had probably its best year operationally since the 2016 spin-off from Danaher, reporting several quarters in a row of double-digit organic growth and margin expansion that beat market estimates. The business has now unlocked the potential we always saw in it, with software accounting for almost a quarter of revenues today, providing a nice element of recurring cash flow to support the more cyclical industrial parts of the group.”
8. Teledyne Technologies Incorporated (NYSE:TDY)
Number of Hedge Fund Holders: 34
Teledyne Technologies Incorporated (NYSE:TDY) delivers technological solutions that drive growth in industrial markets worldwide. The company’s Instrumentation segment specializes in providing monitoring and control instruments used in marine, environmental, industrial, and other applications. Additionally, Teledyne Technologies Incorporated (NYSE:TDY) offers electronic test and measurement equipment, as well as power and communications connectivity devices for distributed instrumentation systems and sensor networks. It is one of the best scientific instruments stocks to watch.
On April 26, Teledyne Technologies Incorporated (NYSE:TDY) reported a Q1 non-GAAP EPS of $4.53 and a revenue of $1.38 billion, topping Wall Street estimates by $0.10 and $10 million, respectively.
Needham analyst James Ricchiuti maintained a Buy rating on Teledyne Technologies Incorporated (NYSE:TDY) but lowered the firm’s price target on the shares to $470 on April 28. The analyst informed investors that Teledyne Technologies Incorporated (NYSE:TDY)’s Q1 results were considered solid, with consistent demand and margins. However, the company’s earnings guidance fell short of consensus expectations. Nevertheless, Needham highlights Teledyne Technologies Incorporated (NYSE:TDY)’s diverse portfolio of businesses, its demonstrated track record of success even in uncertain economic times, and its strong financial position, all of which should provide support to the stock at its current levels.
According to Insider Monkey’s fourth quarter database, 34 hedge funds were long Teledyne Technologies Incorporated (NYSE:TDY), compared to 38 funds in the prior quarter. Select Equity Group is the biggest stakeholder of the company, with 2.26 million shares worth $906 million.
Here is what Artisan Partners specifically said about Teledyne Technologies Incorporated (NYSE:TDY) in its Q2 2022 investor letter:
“We trimmed our position in Teledyne Technologies Incorporated (NYSE:TDY) during Q2 as shares approached our PMV estimate. Teledyne is a supplier of enabling technologies to sense, transmit and analyze information for a diverse group of end markets, including aerospace & defense, factory automation, medical imaging, oil & gas, pharmaceutical research and environmental monitoring. The company is delivering healthy organic growth despite headwinds from semiconductor shortages, led by particular strength in its dental and industrial imaging. Margins and cash flows have accelerated as management has successfully integrated its 2021 acquisition of FLIR Systems, a leader in thermal imaging systems. Meanwhile, Teledyne’s shares have recently benefited from an anticipated increase in demand from Western governments seeking to supply Ukraine with military equipment. The company’s aerospace and defense segment is not core to our thesis—Teledyne’s margins and top-line growth have benefited for over a decade from reducing exposure to this area and placing more emphasis on asset-light businesses—though in the current environment it will likely experience a period of elevated demand.”
7. PerkinElmer, Inc. (NYSE:PKI)
Number of Hedge Fund Holders: 34
PerkinElmer, Inc. (NYSE:PKI) offers a wide range of products, services, and solutions to various markets including diagnostics, life sciences, and applied services. The company operates through two main segments – Discovery & Analytical Solutions and Diagnostics. Via the Discovery & Analytical Solutions segment, PerkinElmer, Inc. (NYSE:PKI) provides scientists with instruments, reagents, informatics, software, subscriptions, detection, and imaging technologies. These offerings aim to facilitate research breakthroughs in the life sciences research market, as well as provide contract research and laboratory services. It is one of the premier scientific instruments stocks to invest in.
On March 9, Citi analyst Patrick Donnelly put “positive catalyst watches” on shares of PerkinElmer, Inc. (NYSE:PKI) following the Q4 reports. For PerkinElmer, Inc. (NYSE:PKI), the analyst expects potential upside from a China diagnostics recovery and a “compelling valuation.”
According to Insider Monkey’s fourth quarter database, 34 hedge funds were bullish on PerkinElmer, Inc. (NYSE:PKI), compared to 30 funds in the last quarter. Ken Griffin’s Citadel Investment Group is a prominent stakeholder of the company, with 1.28 million shares worth $179.5 million.
Renaissance Large Cap Growth Strategy made the following comment about PerkinElmer, Inc. (NYSE:PKI) in its Q4 2022 investor letter:
“Conversely, we sold our position in PerkinElmer, Inc. (NYSE:PKI) following a deterioration in fundamental factors. After a careful review, we believe the prudent decision is to step aside until the company completes the divestiture of its Applied, Food, and Enterprise Services business to private equity. While it allows PerkinElmer to become a pure-play Life Sciences & Diagnostics business, the divestiture will also produce a company that may operate with under-utilized assets until the new management team can deploy capital to rebuild its revenue base following the loss of approximately 30% of revenues.”
6. Roper Technologies, Inc. (NYSE:ROP)
Number of Hedge Fund Holders: 41
Roper Technologies, Inc. (NYSE:ROP) specializes in designing and developing software, as well as technology-enabled products and solutions. Furthermore, Roper Technologies, Inc. (NYSE:ROP) also provides scientific products and devices such as ultrasound accessories, dispensers, metering pumps, automated surgical scrub and linen dispensing equipment, water meters, optical and electromagnetic measurement systems, as well as medical devices. On April 27, the company reported a Q1 non-GAAP EPS of $3.90 and a revenue of $1.47 billion, outperforming Wall Street consensus by $0.04 and $20 million, respectively.
On May 2, TD Cowen analyst Joseph Giordano increased the price target for Roper Technologies, Inc. (NYSE:ROP) to $525 from $500 while maintaining an Outperform rating on the company’s shares. According to the analyst, Roper Technologies, Inc. (NYSE:ROP) delivered one of the strongest reports among similar companies during this season, and their diversified portfolio, focused on software in niche markets, is highly appealing as the market appears to be entering a period of cyclical weakness.
According to Insider Monkey’s fourth quarter database, 41 hedge funds were bullish on Roper Technologies, Inc. (NYSE:ROP), compared to 44 funds in the earlier quarter. Henry Ellenbogen’s Durable Capital Partners is the biggest stakeholder of the company, with 1.68 million shares worth $727.70 million.
In addition to Thermo Fisher Scientific Inc. (NYSE:TMO), Agilent Technologies, Inc. (NYSE:A), and Danaher Corporation (NYSE:DHR), Roper Technologies, Inc. (NYSE:ROP) is one of the top plays in the scientific instruments market.
Wasatch U.S. Select Strategy made the following comment about Roper Technologies, Inc. (NYSE:ROP) in its Q4 2022 investor letter:
“Roper Technologies, Inc. (NYSE:ROP) was another large contributor. The stock was up after the company released strong third-quarter financial results, including revenue and earnings growth that exceeded consensus expectations. Roper develops software and other engineered products for a variety of niche markets and industries. The company owns 26 independent businesses, most of which enjoy strong barriers to entry and leadership positions in their respective markets. The management team has done an exceptional job, in our view, of improving the operating performance and free cash flow generation of the businesses in its portfolio, then deploying that cash into acquiring new businesses that fit a similar profile. Roper’s ability to put up strong results in what’s been a challenging operating environment for many businesses speaks to the durability of the business.”
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Disclosure: None. 10 Best Scientific Instruments Stocks To Buy is originally published on Insider Monkey.
