In this article, we will look at the 10 best diagnostics and research stocks to buy according to analysts.
The diagnostics and research sector holds a crucial position in the healthcare ecosystem, thus attracting investor interest. However, recent shifts in the regulatory environment have sparked a tug-of-war with rapid scientific innovation, potentially creating a conflict in investor decision-making.
As of March 6, 2026, CNBC reported that there is growing concern among investors regarding what appears to be a more stringent and unpredictable FDA. Data from RTW Investments suggested that the agency has denied or discouraged applications for at least eight new drugs over the past year. This includes high-profile setbacks for gene therapies targeting Huntington’s disease and Hunter syndrome. RBC Capital analyst Luca Issi noted on March 6, 2026, that the investors and key stakeholders are expecting to see more consistency from the FDA.
With this perceived uncertainty in the regulatory environment currently weighing on the sector, incorporating an institutional perspective into the decision-making process can help investors better navigate the market.
In this regard, we have compiled a list of the 10 best diagnostics and research stocks that analysts believe are well-positioned to maintain growth.
Our Methodology
We have put together our list of 10 best diagnostics and research stocks to buy according to analysts, by screening for diagnostic and research stocks with analyst price targets at least 10% above current market prices to ensure strong appreciation potential. We then ranked stocks by the number of hedge funds holding a stake in each. We also limited our final selection to companies that have recently reported noteworthy developments likely to impact investor sentiment. All the pricing data are current as of market close on March 21, 2026.
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 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).
10. Personalis, Inc. (NASDAQ:PSNL)
Number of Hedge Fund Holders: 9
Personalis, Inc. (NASDAQ:PSNL) is one of the 10 best diagnostics and research stocks to buy according to analysts.
On March 5, 2026, Personalis, Inc. (NASDAQ:PSNL) saw its price target from Morgan Stanley lowered from $11 to $10. The firm’s analyst maintained an Equal Weight rating on the stock after updating its estimates to reflect an increased 2026 net loss guidance and higher projected long-term operating expenses.
In another development, on March 12, 2026, Personalis, Inc. (NASDAQ:PSNL) announced the publication of the PREDICT-DNA study in the Journal of Clinical Oncology. The study highlighted the effectiveness of its NeXT Personal assay in monitoring breast cancer. It tracks up to 1,800 tumor-specific variants to provide precise risk-stratification. Richard Chen, MD, Chief Medical Officer and Executive Vice President, R&D, Personalis, Inc. (NASDAQ:PSNL), gave the following statement:
The results of this study suggest that an ultrasensitive ctDNA assay like NeXT Personal could help patients better understand their response to neoadjuvant therapy, with the potential to help inform the need for additional therapy.
Founded in 2011, Personalis, Inc. (NASDAQ:PSNL) is a cancer genomics leader specializing in ultrasensitive liquid biopsy tests for minimal residual disease (MRD). Its headquarters is in California.
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