12 Best Diagnostics Stocks to Invest In Right Now

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8. Mettler-Toledo International Inc. (NYSE:MTD)

Number of Hedge Fund Holders: 50

Mettler-Toledo International Inc. (NYSE:MTD) supplies precision instruments and services for diagnostics and research. It manufactures a range of precision instruments, including industrial instruments, retail weighing solutions, and laboratory instruments. These precision laboratory instruments are used for sample preparation, material characterization, synthesis, analytical benchtop, and in-line measurement.

The company is turning a corner with its 2024 results after a period of unchanged stock price. It delivered two consecutive quarters of positive revenue growth. The company’s service revenue is a primary stabilizing factor for its operations, acting as a recurring and resilient revenue stream, supported by a $16 billion installed base of lab instruments and weighing systems that require regular maintenance.

Mettler-Toledo International Inc. (NYSE:MTD) is also undergoing consistent margin expansion, with Q4 2024 gross margins hitting a record 61.2%. A crucial driver of these gains is the company’s pricing power, which is supported by its mission-critical products, dominant market position, and highly regulated customer base. It operates in key defensible segments of the industry, and its management has continually highlighted the company’s potential to grow by expanding market share in fragmented categories. These factors reinforce its long-term growth trajectory. In a report released on February 11, Vijay Kumar from Evercore ISI maintained a Buy rating on Mettler-Toledo International Inc. (NYSE:MTD), with a price target of $1,475.00. The company takes the eighth spot on our list of the 12 best diagnostics stocks to invest in right now.

Mar Vista US Quality Strategy stated the following regarding Mettler-Toledo International Inc. (NYSE:MTD) in its Q4 2024 investor letter:

“Healthcare stocks in general, and Life Science tool businesses more specifically, ended 2024 on a downbeat as investor sentiment is still cautious on the market’s post-Covid recovery. Hopes for an above-average industry growth rebound in 2025 were muted by managements’ more cautious guidance. Investor concerns over the Trump administration’s healthcare leadership and policies further dampened optimism for a strong 2025. Tariff impacts, NIH funding and Biotech/pharma spending top the list of investor concerns. We believe Mettler-Toledo International Inc.’s (NYSE:MTD) and Danaher’s secular growth opportunities stay intact. Both businesses compete in key, defensible segments of the industry’s value chain and have strong pricing power and margin expansion opportunities. Long-term secular drivers for scientific research and commercialization of biologic therapeutics and molecular diagnostic should drive above-average growth for both businesses.”

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