12 Best Diagnostics Stocks to Invest In Right Now

10. ICON Public Limited Company (NASDAQ:ICLR)

Number of Hedge Fund Holders: 46

ICON Public Limited Company (NASDAQ:ICLR) is a clinical research organization that provides outsourced development services to the biotechnology, pharmaceutical, and medical device industries. It specializes in managing, developing, and analyzing programs that support clinical development. The company operates in Ireland, the Rest of Europe, the US, and Other geographical segments.

ICON Public Limited Company (NASDAQ:ICLR) showed improved performance from a business development perspective in fiscal Q4 2024, with gross bookings of $3.06 billion increasing 8% sequentially and 3% year-over-year. It also made substantial progress in awards in its biotech business, executing on the improved pipeline and opportunity flow in that division.

Despite a challenging backdrop, ICON Public Limited Company (NASDAQ:ICLR) delivered a 2% revenue growth for 2024, along with adjusted earnings per share of 9.5% both on a full year and year-over-year basis. The company also attained its target free cash flow of $1.1 billion for 2024, an increase of 10% over 2023. In its Q4 2024 investor letter, Diamond Hill Mid Cap Strategy said that ICON Public Limited Company’s (NASDAQ:ICLR) outlook over the long term is favorable. Analysts are also bullish on the stock, and its median price target of $184.87 implies an upside of 35.23% from current levels.

Diamond Hill Mid Cap Strategy stated the following regarding the company in its Q4 2024 investor letter:

“As valuations have continued rising and the economic cycle has gotten relatively long in the tooth, we’ve thought carefully about where and how we are exposed to more cyclical stocks. As such, we initiated a number of new positions in Q4, including ICON Public Limited Company (NASDAQ:ICLR), Informatica, Teledyne Technologies, LPL Financial Holdings, Teleflex Incorporated and Solventum Corporation.

ICON is a leader in clinical trial outsourcing and commercial support and is a key player in the efficient and timely delivery of worldwide drug development for pharmaceutical clients. We believe the outlook over the long-term is favorable and initiated a position during the quarter at a valuation below our estimate of intrinsic value.”