We recently published a list of the 12 Best Diagnostics Stocks to Invest In Right Now. In this article, we are going to take a look at where Mettler-Toledo International Inc. (NYSE:MTD) stands against the other best diagnostics stocks to invest in right now.
Overview of the Clinical Diagnostics Market
According to a report by Mordor Intelligence, the clinical diagnostics market has a size of $88.79 billion as of 2025. It is expected to grow at a compound annual growth rate (CAGR) of 5.48% between 2025 and 2030, reaching $115.94 billion at the end of the forecast period. While North America is the largest market in the domain at present, Asia-Pacific takes the lead as the fastest growing.
As per Grand View Research, the growth in the global clinical diagnostics industry is attributed to the rising demand for lab automation and the development of specialized tests for disease management and early disease detection. In addition, the growing use of point-of-care diagnostics products has also driven a decentralization trend in the healthcare industry.
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AI in Diagnostics Healthcare: Is A New Trend Emerging?
One of the primary trends emerging in the sector is the growing use of artificial intelligence. AI-powered diagnostic tools are revolutionizing the interpretation of medical images with high accuracy, leading to increased adoption. These tools not only improve disease diagnostics but also allow medical professionals to develop more effective and personalized treatment plans, elevating the overall healthcare experience.
On February 24, GlobeNewswire reported that the US AI diagnostics market was worth around $655 million in 2024, as per estimates by Precedence Statistics. It is expected to grow at a CAGR of 20.7% between 2025 and 2034, reaching $4.29 billion by the end of the forecast period.
On February 4, Eric Lefkofsky, founder and CEO of Tempus AI, appeared on CNBC to talk about the impact of generative AI in diagnostics healthcare, among other things. He was of the view that generative AI and large language models aren’t more impactful in any other avenue as much as they are in healthcare. Diagnostics sit at the center of healthcare, as almost every other major decision a doctor makes is undertaken after ordering some kind of laboratory test. If we can make diagnostics more intelligent, it would be possible to route patients to the best possible and most optimal therapy.
Generative AI is thus allowing access to new tools that help structure and make sense of disparate information and use that information, whether it be physician progress notes, pathology reports, molecular data, CAT scans, MRIs, or others, to make sure that the patients are on the optimal therapy path. He further said that the promise of this technology is twofold: it is enormous in helping patients live better and longer lives while reducing the substantial waste in the US healthcare system. Generative AI is thus significantly impactful in healthcare diagnostics.
Our Methodology
We sifted through stock screeners, financial media reports, and ETFs to compile a list of 20 diagnostics and research stocks. We then selected the top 12 with the highest number of hedge fund holders, as of Q4 2024, and ranked them in ascending order. We sourced the hedge fund sentiment data from Insider Monkey’s database.
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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
A close-up of a laboratory instrument, with a technician making precise adjustments.
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.”
Overall, MTD ranks 8th on our list of the best diagnostics stocks to invest in right now. While we acknowledge the potential of MTD as an investment, our conviction lies in the belief that 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 MTD 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.
