The life sciences sector is booming, with innovations in precision medicine and other fields driving the growth of the global bio-health care industry. Companies that provide the tools and services that help scientists conduct research more efficiently and cost-effectively are also benefiting from this research boom. These companies will continue to see their stock prices rise as long as investors remain bullish on the future of the life sciences market. To help you get started investing, here are some top life sciences tools and services stocks to buy now and hold for the long term.
Investors like NeoGenomics because it is a pure play on the increasing popularity of next-generation sequencing. As the name implies, next-generation sequencing is a more advanced and affordable sequencing technique than its predecessors. Scientists need to use specialized sequencing equipment to do the sequencing of DNA and other genetic material. The more advanced sequencing techniques are also growing for other types of medical testing, such as cancer screening. As sequencing becomes more common, demand for sequencing equipment will increase. That means companies like NeoGenomics that make sequencing equipment will see their sales and stock prices rise. Beyond the strength of its core business, NeoGenomics also has several other positive factors in its favor, including its low debt and cash on hand. The company has also been growing its dividend payment, which is an additional source of income for long-term investors. These factors make NeoGenomics an excellent long-term investment choice.
Bio-Rad Laboratories (BIO)
Bio-Rad Laboratories makes a wide range of laboratory equipment and supplies, including high-end instruments, essential lab equipment and consumables, and robotics systems. This company has several products that are the gold standard in the industry, including its Bio-Plex system, a technique for high-throughput screening biological samples. Bio-Rad Laboratories also recently completed a restructuring designed to make the company more streamlined and efficient. That restructuring has helped to boost the company’s cash flow and profitability, making it an excellent long-term investment choice. Beyond this, Bio-Rad Laboratories is also seeing growth in its top line. The company has been expanding aggressively internationally, which should help boost its sales and profits in the coming years. Bio-Rad Laboratories also has a strong balance sheet, allowing it to fund future growth and acquisitions. It also pays a dividend, an added benefit for long-term investors.
ICON plc (ICLR)
ICON plc makes a wide range of laboratory equipment and supplies, including high-throughput sequencers, DNA and RNA synthesizers, liquid chromatography systems, and atomic force microscopes. The company also provides consulting and support services for the scientific instrumentation industry. ICLR has several industry products that are the gold standard, including its HiSeq X Ten sequencer, the world’s most extensive DNA sequencing system. ICLR also recently acquired a company specializing in analytical instruments, adding to its product portfolio. Beyond its robust product line, ICLR has several other advantages, including a strong balance sheet and a healthy cash flow. In addition, the company has been focusing on cost-cutting, which has helped increase its profitability. ICLR also pays a dividend, an added benefit for long-term investors.
Bruker is a leading supplier of scientific instruments in life sciences, materials science, and chemistry. The company has a comprehensive product portfolio, including lab equipment like mass spectrometers and high-end microscopes, as well as software for managing scientific experiments. Bruker also has a growing portfolio of products for the emerging semiconductor and quantum technology fields. The company recently acquired a quantum computing company and has agreed to acquire an Austrian materials testing company. Beyond its core business, Bruker has several other advantages, including a strong balance sheet and a healthy cash flow. The company has also been focusing on cost-cutting, which has helped increase its profitability. Bruker also pays a dividend, an added benefit for long-term investors. Investors who are bullish on the long-term future of the life sciences sector can benefit from investing in stocks of companies that provide the tools and services that help scientists conduct research more efficiently and cost-effectively. These companies will continue to see their stock prices rise as long as investors remain bullish on the future of the life sciences market.