5 Best Scientific Instruments Stocks To Buy

In this article, we discuss 5 best scientific instruments stocks to buy. If you want to see more stocks in this selection, check out 10 Best Scientific Instruments Stocks To Buy. 

5. Keysight Technologies, Inc. (NYSE:KEYS)

Number of Hedge Fund Holders: 41

Keysight Technologies, Inc. (NYSE:KEYS) is a provider of electronic design and test solutions for various industries including commercial communications, networking, aerospace, defense and government, automotive, energy, semiconductor, electronics, and education. Keysight Technologies, Inc. (NYSE:KEYS)’s Communications Solutions Group provides electronic design automation software, test solutions for radio frequency and microwave applications, network test platforms, and software applications for data centers, routing and switching, security, and more. The Electronic Industrial Solutions Group offers design and verification tools, as well as a wide range of test and measurement equipment such as multimeters, function generators, thermal imagers, power supplies, and more. It is one of the best scientific instruments stocks to invest in.

On April 24, Morgan Stanley analyst Meta Marshall maintained an Equal Weight rating on Keysight Technologies, Inc. (NYSE:KEYS) but lowered the price target on the shares to $180 from $184. The analyst acknowledged Keysight’s strong position in the test and measurement industry and its exposure to significant industry trends. However, the firm believes that the defensive opportunity offered by Keysight is already reflected in the company’s valuation. 

According to Insider Monkey’s fourth quarter database, 41 hedge funds were bullish on Keysight Technologies, Inc. (NYSE:KEYS), compared to 42 funds in the prior quarter. GLG Partners is the biggest stakeholder of the company, with 1.26 million shares worth $216.5 million. 

Carillon Tower Advisers made the following comment about Keysight Technologies, Inc. (NYSE:KEYS) in its Q3 2022 investor letter:

“Keysight Technologies, Inc. (NYSE:KEYS) also performed well. Demand for electronic test and measurement equipment continues to grow, fueled by cloud adoption, electric vehicle growth, and the general electrification of industry and consumer items.”

4. Waters Corporation (NYSE:WAT)

Number of Hedge Fund Holders: 41

Waters Corporation (NYSE:WAT) is a specialty measurement company that offers analytical workflow solutions across Asia, the Americas, and Europe. The company provides high and ultra-performance liquid chromatography and mass spectrometry technology systems, along with consumable products and post-warranty service plans. Waters Corporation (NYSE:WAT) is one of the best scientific instruments stocks to invest in. 

On February 15, Waters Corporation (NYSE:WAT) reported a Q4 non-GAAP EPS of $3.84 and a revenue of $859 million, outperforming Wall Street estimates by $0.10 and $26.15 million, respectively. 

Barclays on April 4 maintained an Overweight rating on Waters Corporation (NYSE:WAT) but reduced the price target on the shares to $350 from $385. According to the firm’s research note, the macro environment remains a significant factor as the life science tools and diagnostics sector prepares for Q1 results. Barclays expects results to be consistent with the Q1 guidance, which is relatively modest, and has not identified any significant risks at this stage. Despite this, the firm remains optimistic about Waters Corporation (NYSE:WAT)’s prospects and anticipates some improvement in Q2, leading to a more favorable setup for the second half of the year.

According to Insider Monkey’s fourth quarter database, 41 hedge funds were long Waters Corporation (NYSE:WAT), with collective stakes worth $2.3 billion. Terry Smith’s Fundsmith LLP is the biggest stakeholder of the company, with 3.6 million shares worth $1.26 billion. 

Diamond Hill Capital made the following comment about Waters Corporation (NYSE:WAT) in its Q3 2022 investor letter:

“Other top contributors included our long position in HCA Healthcare and our short position in Waters Corporation (NYSE:WAT). Healthcare facilities operator HCA outperformed low expectations as it reported results showing some of its cost pressures were easing. In Q3, life science tools company Waters reported solid revenue growth but weak margin expansion, pressuring shares. Our view is the company, with already industry-leading margins, will struggle to drive additional margin expansion.”

3. Agilent Technologies, Inc. (NYSE:A)

Number of Hedge Fund Holders: 48

Agilent Technologies, Inc. (NYSE:A) provides specialized solutions for life sciences, diagnostics, and applied chemical markets worldwide. The company’s Life Sciences and Applied Markets segment offers a range of instruments and systems, including liquid chromatography, mass spectrometry, gas chromatography, atomic absorption, and microwave plasma-atomic emission spectrometry instruments. On February 28, Agilent Technologies, Inc. (NYSE:A) reported a Q1 non-GAAP EPS of $1.37 and a revenue of $1.76 billion, topping Wall Street estimates by $0.06 and $60 million, respectively. It is one of the best scientific instruments stocks to invest in. 

As per Credit Suisse analyst Dan Leonard, Agilent Technologies, Inc. (NYSE:A) had a strong quarter, and as a result, he increased the firm’s price target on the company’s shares from $165 to $170 while maintaining an Outperform rating. The analyst believes that the market undervalues Agilent Technologies, Inc. (NYSE:A)’s potential to grow towards the top of the industry in various macro environments.

According to Insider Monkey’s fourth quarter database, 48 hedge funds were bullish on Agilent Technologies, Inc. (NYSE:A), compared to 46 funds in the prior quarter. Ian Simm’s Impax Asset Management is the biggest stakeholder of the company, with 3.92 million shares worth $586.7 million. 

Cooper Investors made the following comment about Agilent Technologies, Inc. (NYSE:A) in its Q4 2022 investor letter:

“Agilent Technologies, Inc. (NYSE:A) finished a great year with +12% organic growth after a +15% year in 2021. As a supplier of liquid chromatography/ mass spectrometry instruments into the life sciences industry, Agilent enjoyed a period of supernormal growth over the 2020-2021 COVID pandemic. Like several of our healthcare and diagnostics investments Agilent de-rated quite sharply in the first half of 2022 as the market ‘faded’ the decline in COVID testing revenues. In our view this short term volatility obscures the high quality of Agilent’s business and long term growth opportunities. One example is environmental testing as mandated by the US EPA where US$4bn of funding in the infrastructure bill has been put aside for PFAS testing. As CEO Mike McMullen noted on the last call, ‘it’s the first time in my career we’ve seen this kind of government money coming in’.”

2. Danaher Corporation (NYSE:DHR)

Number of Hedge Fund Holders: 88

Danaher Corporation (NYSE:DHR) is a global company that designs, manufactures, and markets professional, medical, industrial, and commercial products and services. The Biotechnology segment provides bioprocess technologies, consumables, and services, lab filtration, separation, and purification, protein purification and analytical tools, reagents, membranes, and services, and healthcare filtration solutions. The company’s Life Sciences segment offers mass spectrometers, flow cytometry, genomics, lab automation, centrifugation, particle counting and characterization, microscopes, and genomics consumables. It is one of the best scientific instruments stocks to watch. 

On April 25, Danaher Corporation (NYSE:DHR) reported a Q1 non-GAAP EPS of $2.36 and a revenue of $7.2 billion, outperforming Wall Street estimates by $0.10 and $140 million, respectively. The company expects mid-single digits year-over-year growth in non-GAAP base business core revenue for both the second quarter and full year 2023.

Puneet Souda, an analyst from SVB Securities, initiated coverage of Danaher Corporation (NYSE:DHR) with an Outperform rating and a price target of $300 on May 1. The analyst believes that Danaher is the most significant mega-cap long among the life science tools universe for 2023-2024, with its guide fully reset on the bioprocess tools market, which offers attractive, recurring revenues. 

According to Insider Monkey’s fourth quarter database, 88 hedge funds were bullish on Danaher Corporation (NYSE:DHR), compared to 89 funds in the prior quarter. Dan Loeb’s Third Point is the biggest stakeholder of the company, with 2.70 million shares worth $716.6 million. 

Madison Sustainable Equity Fund made the following comment about Danaher Corporation (NYSE:DHR) in its Q1 2023 investor letter:

“Danaher Corporation (NYSE:DHR) has been trading lower since it reported fourth quarter earnings in January. The company lowered Covid-19 related sales for 2023 from $500 million to $150 million as pharmaceutical companies are switching their focus away from pandemic vaccines and therapeutics to the research and development of new drugs. Danaher’s pharmaceutical customers will be working through existing inventory before starting to order new products. We remain confident in Danaher’s strong competitive position providing innovative products to Life Science companies. Healthcare insurance stocks have been weak due to a ruling by CMS (Center for Medicare & Medicaid Services) in late January where claw back payments totaling $4.7 billion were due from insurers that overcharged Medicare. The claw back payment period goes back to 2011.”

1. Thermo Fisher Scientific Inc. (NYSE:TMO)

Number of Hedge Fund Holders: 92

Thermo Fisher Scientific Inc. (NYSE:TMO) provides a range of solutions and products in the life sciences, analytical instruments, specialty diagnostics, and laboratory fields, both in the US and internationally. The company serves pharmaceutical, biotechnology, academic, government, environmental, and other research and industrial markets, as well as clinical laboratories. Thermo Fisher Scientific Inc. (NYSE:TMO) is one of the best scientific instruments stocks to consider. 

On April 27, Citi analyst Patrick Donnelly maintained a Buy rating on Thermo Fisher Scientific Inc. (NYSE:TMO) but lowered the price target on the shares from $700 to $650  following the Q1 results. The analyst stated that Thermo Fisher Scientific Inc. (NYSE:TMO) recognized some hesitation among bioprocessing customers but to a smaller extent than its peers, as its products have less exposure to early-stage biotech and are upstream-focused. However, the firm lowered the price target due to mounting concerns about the end market.

According to Insider Monkey’s fourth quarter database, 92 hedge funds were long Thermo Fisher Scientific Inc. (NYSE:TMO), and Thomas Steyer’s Farallon Capital is the largest stakeholder of the company, with 1.16 million shares worth approximately $640 million. 

Polen Global Growth Strategy made the following comment about Thermo Fisher Scientific Inc. (NYSE:TMO) in its Q1 2023 investor letter:

“During the quarter, we also raised our position in Thermo Fisher Scientific Inc. (NYSE:TMO). The company effectively sells pickaxes and shovels to the life sciences industry, is well balanced, is durable, and has a strong management team at the helm. We took an initial position recently and are now raising it to an average weight within the Portfolio. During the most recent quarter, the company grew revenue 11% in constant currency. Core organic growth, excluding COVID-19 testing revenue which fell 16%, grew a very strong 13%. This company plays an important role within the Portfolio as a “safety” within our growth spectrum approach and over the next five years we expect EBITDA and EPS to grow at roughly low double digits and low teens, respectively.”

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