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.
9. CareDx, Inc. (NASDAQ:CDNA)
Number of Hedge Fund Holders: 29
CareDx, Inc. (NASDAQ:CDNA) is one of the 10 best diagnostics and research stocks to buy according to analysts.
On March 5, 2026, CareDx, Inc. (NASDAQ:CDNA) launched VANTx, an AI-powered, cloud-native platform designed to transform complex transplant data into actionable clinical insights. The platform, introduced at the 2026 Precision Medicine World Conference, analyzes patient cohorts, treatment trends, and real-world evidence with the help of Llama 3 and advanced machine learning. Jing Huang, Chief Data and AI Officer at CareDx, Inc. (NASDAQ:CDNA), gave the following statement.
As the market leader in transplant precision diagnostics and patient care solutions, we can help our transplant center partners generate actionable insights using LLMs and other models.
The platform is initially available via medical consultation, with plans to roll out permission-based access to clinicians further into 2026.
Separately, on February 26, 2026, BTIG raised its price target on CareDx, Inc. (NASDAQ:CDNA) from $25 to $26 while maintaining a Buy rating on the company’s stock. The firm cited positive Q4 results and 2026 revenue guidance above street estimates, while acknowledging the breadth of the range.
Founded in 1998, CareDx, Inc. (NASDAQ:CDNA) is a transplant diagnostics company that provides high-value diagnostic surveillance solutions. Its headquarters is in California.
8. RadNet, Inc. (NASDAQ:RDNT)
Number of Hedge Fund Holders: 31
RadNet, Inc. (NASDAQ:RDNT) is one of the 10 best diagnostics and research stocks to buy according to analysts.
On March 2, 2026, RadNet, Inc. (NASDAQ:RDNT) announced the acquisition of Paris-based Gleamer SAS for up to €230 million. The acquisition positions the company’s subsidiary, DeepHealth, as the world’s largest radiology AI provider. Gleamer services 700 global contracts. It reported a 90% ARR growth rate between 2022 and 2025 and is expected to reach $30 million in ARR by 2026. Structured as an all-cash transaction, Gleamer’s takeover integrates FDA-cleared X-ray and musculoskeletal AI into DeepHealth’s portfolio, covering all major imaging modalities. RadNet, Inc. (NASDAQ:RDNT) anticipates significant cost effectiveness and diagnostic automation capabilities from the integration in the third quarter of 2026.
Following the acquisition, RadNet, Inc. (NASDAQ:RDNT)’s DeepHealth unveiled the industry’s most comprehensive native clinical AI portfolio at ECR 2026 on March 4, 2026. The platform integrates Gleamer’s AI solutions for MR, CT, X-ray, Ultrasound, and Mammography to establish clinical AI suites covering breast, chest, neuro, and prostate care. With these modular suites, DeepHealth aims to stage-shift disease through earlier detection and automated reporting.
Founded in 1981, RadNet, Inc. (NASDAQ:RDNT) is the largest U.S. operator of outpatient diagnostic imaging centers. Its headquarters is in California.
7. GeneDx Holdings Corp. (NASDAQ:WGS)
Number of Hedge Fund Holders: 39
GeneDx Holdings Corp. (NASDAQ:WGS) is one of the 10 best diagnostics and research stocks to buy according to analysts.
On March 12, 2026, Craig-Hallum reaffirmed its Buy rating on GeneDx Holdings Corp. (NASDAQ:WGS) and maintained a price target of $153 on the company’s stock following data presented at the ACMG Annual Meeting. The data indicated that the company’s whole exome and genome testing notably reduces healthcare resource utilization and total healthcare costs. Analysts believe these findings strengthen GeneDx Holdings Corp. (NASDAQ:WGS)’s capabilities in the commercial and Medicaid coverage expansion. The firm remains bullish despite the company’s shares witnessing a 9% decline on the same day, after its competitor Natera launched its Zenith genomics assay, which aims at offering improved detection of rare diseases.
Separately, on February 24, 2026, BTIG analyst Mark Massaro maintained the firm’s Buy rating on GeneDx Holdings Corp. (NASDAQ:WGS) but adjusted the price target from $200 to $170. The firm remains bullish following a strong Q4 beat and also expressed confidence in the company’s fundamentals and new opportunities.
Founded in 2000, GeneDx Holdings Corp. (NASDAQ:WGS) is a leader in rare disease genomics and exome/genome sequencing, with headquarters in Maryland.
6. Waters Corporation (NYSE:WAT)
Number of Hedge Fund Holders: 47
Waters Corporation (NYSE:WAT) is one of the 10 best diagnostics and research stocks to buy according to analysts.
On March 18, 2026, Waters Corporation (NYSE:WAT) announced the pricing of a $3.5 billion senior notes offering through its subsidiary, Augusta SpinCo Corporation. The multi-tranche issuance features interest rates ranging from 4.321% to 5.245%. Their maturities span from 2027 to 2036. The offering is expected to close around March 23, 2026. The company intends to utilize the proceeds from the offering to repay existing debts under a delayed draw term loan. Waters Corporation (NYSE:WAT) and some of its direct and indirect subsidiaries guarantee the Notes unconditionally, with Barclays serving as the global coordinator for the transaction.
In a separate event, Waters Corporation (NYSE:WAT) announced the launch of ARES-G3™ Rheometer on March 9, 2026. This next-generation instrument captures 25,000 data points per second (a tenfold increase) while reducing standard testing times by 80%, thereby setting a new industry benchmark for data quality at breakthrough speed. The ARES-G3 incorporates Fast Frequency Chirps, allowing scientists to monitor curing or degrading materials with a never-before-seen precision.
Founded in 1958, Waters Corporation (NYSE:WAT) is a global leader in life sciences and diagnostics, specializing in analytical technologies. Its headquarters is in Massachusetts.
While we acknowledge the potential of WAT to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than WAT and that has 100x upside potential, check out our report about the cheapest AI stock.
Click to continue reading and see the 5 Best Diagnostics and Research Stocks to Buy According to Analysts.
Disclosure: None. Follow Insider Monkey on Google News.
