12 Best Diagnostics Stocks to Invest In Right Now

4. Illumina, Inc. (NASDAQ:ILMN)

Number of Hedge Fund Holders: 61

Illumina, Inc. (NASDAQ:ILMN) develops, manufactures, and markets life science tools and integrated systems for large-scale genetic variation and function analysis. It operates through the Core Illumina segment, which indulges in the research, clinical, and applied markets fields and allows the adoption of a range of genomic solutions. The company’s products include kits, reagents, instruments, software, selection tools, and more. Illumina, Inc. (NASDAQ:ILMN) also offers services such as proactive instrument monitoring, sequencing and microarray services, and instrument services, training, and consulting.

The company’s fiscal Q4 2024 results reflect growth potential and resilience, with core revenue reaching $1.1 billion and reflecting a 1% growth from fiscal Q4 2023. Illumina, Inc. (NASDAQ:ILMN) also improved its operating margins, with GAAP operating margin at 15.8% and non-GAAP at 19.7%. In a report released on March 12, Mason Carrico from Stephens maintained a Buy rating on the company with a price target of $156.00.

Baron Fifth Avenue Growth Fund also expressed bullish sentiments regarding the company in their fiscal Q4 2024 investor letter, saying that Illumina, Inc. (NASDAQ:ILMN) is well-positioned to benefit from the rising adoption of DNA sequencing. The field represents untapped potential, as less than 1% of the people had their DNA sequenced. Here is what Baron Fifth Avenue Growth Fund said about Illumina, Inc. (NASDAQ:ILMN) in its Q4 2024 investor letter:

“We also increased several of our other existing positions including the next-generation sequencing platform Illumina, Inc. (NASDAQ:ILMN) – as we believe the company remains well positioned to benefit from the growing adoption of DNA sequencing as still less than 1% of people had their DNA sequenced. We also believe that as the adoption of the most recent technology matures over the next several years, growth rates which are currently masked (due to the lower price of the new technology), will become more evident.”