UBS’ Top Quant Stocks In AI, IT, Healthcare & Other Sectors: Top 33 Stocks In All Sectors

8. Illumina, Inc. (NASDAQ:ILMN)

Number of Hedge Fund Investors In Q2 2024: 56

Sector: Healthcare

Illumina, Inc. (NASDAQ:ILMN) is a California-based back-end medical products and services provider. A specialty firm, it caters to the needs of the genetic testing and robotics sections of the medical industry. Consequently, Illumina, Inc. (NASDAQ:ILMN) is a high-growth firm that depends on loose capital conditions that drive higher spending in gene testing and robotics. This makes it unsurprising that the shares are up by a modest 11.9% year to date. Yet, Illumina, Inc. (NASDAQ:ILMN)’s stock might have pent-up potential due to the fact that it is one of the biggest sequencing product providers in the medical industry. An economic recovery could drive up spending in its target industries and lead to share price tailwinds. Potential tailwinds include continuing weakness in the Chinese market.

Artisan Partners mentioned Illumina, Inc. (NASDAQ:ILMN) in its Q3 2024 investor letter. Here is what the fund said:

“Notable adds in the quarter included Samsara, Illumina, Inc. (NASDAQ:ILMN) and Onto Innovation. Illumina is a leading provider of next-generation sequencing instruments for genetic testing. As costs have fallen, genome sequencing has become more mainstream, expanding within academic research and beyond into high-value clinical diagnostic testing applications. The company has gone through a difficult few years after an unwise acquisition of Grail (a company that develops blood tests designed to detect cancers), a difficult transition to a new sequencing system and significant margin contraction. However, new management has focused on controlling costs, has spun out Grail and, in our view, is putting the company back on a path of sustainable growth. With a stock price that we do not believe reflects Illumina’s value as a unique life science tools franchise, we continue to build our GardenSM position.”