We recently published a list of 12 Best Scientific Instruments Stocks to Buy Right Now. In this article, we are going to take a look at where ESCO Technologies Inc. (NYSE:ESE) stands against other best scientific instruments stocks to buy right now.
The global scientific instruments market has been experiencing steady growth and is expected to continue its upward trajectory in the coming years. According to a recent report by Expert Market Research, the market was valued at approximately $39.94 billion in 2024 and is forecasted to expand at a compound annual growth rate (CAGR) of 4.50% between 2025 and 2034, reaching a projected value of $62.03 billion by 2034. This growth is attributed to several critical factors driving the demand for scientific instruments across various industries, including healthcare, biotechnology, pharmaceuticals, and research and development.
Influence of Healthcare Investments on Scientific Instruments Demand:
The global scientific instruments market is significantly influenced by substantial investments in healthcare, particularly in the development of advanced diagnostic and analytical tools. As per the NHE factsheet in 2023, U.S. healthcare spending reached $4.9 trillion, accounting for 17.6% of the nation’s GDP. Additionally, the rapid advancements in biotechnology and pharmaceuticals are significantly influencing market growth. With the continuous innovation in research, there is an increasing need for precise and reliable instruments to support testing and analysis, particularly in laboratories and clinical environments. In 2023, the top 20 global pharmaceutical companies collectively spent $145 billion on R&D, up from $139 billion in 2022, as reported by Deloitte.
Pharmaceutical Industry’s Focus on Drug Quality and Biosimilar Development:
Pharmaceutical companies are focusing on improving drug quality and developing better products, necessitating the use of advanced equipment for analysis and testing. The development and marketing of biosimilars require significant investment, with costs ranging from $100 million to $250 million and development timelines of 7 to 8 years, according to a report by the National Library of Medicine.
Technological Advancements Shaping the Scientific Instruments Market:
Technological advancements in scientific instruments are playing a significant role in shaping the market. In fields like genomics, personalized medicine, and neuroscience, instruments with enhanced capabilities, such as higher precision, automation, and the ability to handle complex data, are becoming increasingly essential. For example, next-generation sequencing technologies have revolutionized genomics by enabling rapid and accurate analysis of genetic data and facilitating personalized medicine approaches.
Our Methodology
To compile the list of the best scientific instruments stocks to invest in, we screened for companies listed on the New York Stock Exchange and Nasdaq that are involved in the scientific instruments industry. Next, we cross-referenced these stocks with Insider Monkey’s Q4 2024 hedge fund database to identify which companies had significant institutional backing. The stocks were then ranked according to the number of hedge fund investors holding positions in them.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 363.5% since May 2014, beating its benchmark by 208 percentage points (see more details here).
An industrial tech facility with robotic arms for precision machining components.
ESCO Technologies Inc. (NYSE:ESE)
Number of Hedge Fund Holders: 12
ESCO Technologies Inc. (NYSE:ESE) is a leading provider of engineered products and solutions across a variety of industries, including aerospace, defense, healthcare, and renewable energy. With a focus on innovation, the company operates through three distinct segments: Aerospace & Defense, Utility Solutions Group, and RF Test & Measurement. Each segment specializes in advanced technologies, ranging from filtration and fluid control systems to diagnostic testing solutions and RF energy measurement products. The stock has surged by over 59% in the past 12 months, which makes it one of the best scientific instruments stocks on our list.
ESCO Technologies Inc. (NYSE:ESE) recently announced its strategic investment in Allwin Medical Devices Inc., a leading manufacturer of medical devices for IVF, urology, gastroenterology, and interventional radiology based in Anaheim, California. This investment strengthens the company’s commitment to delivering sustainable workflow solutions, with Allwin’s IVF consumables enhancing ESCO Technologies Medical’s IVF instrument portfolio. It also expands the company presence in India, leveraging Allwin’s local operations and expertise in the IVF consumables sector.
ESCO Technologies Inc. (NYSE:ESE) reported solid financial performance for FY 2024, with sales increasing 7.4% to $1.03 billion, driven by both organic growth and contributions from the MPE acquisition. The company’s GAAP EPS rose by 10.1% to $3.94, while adjusted EPS grew 13% to $4.18. Entered orders saw a healthy 9.7% rise, reaching $1.1 billion, which led to a record backlog of $879 million. Operating cash flow also saw significant improvement, up by $51 million, reaching $128 million for the year.
Overall, ESE ranks 12th on our list of best scientific instruments stocks to buy right now. While we acknowledge the potential for ESE as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than ESE but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
