Advancement in the field of biotechnology along with growing need of reagents in drug testing and stem cell research is pushing demand for biotechnology reagents worldwide. Therefore it would be prudent to take a look at a couple of stocks operating in the segment that are poised to gain from the trend.

The global biotechnology reagents market is poised for impressive growth, according to a reportby research firm Research and Markets. Increasing research on stem cells is a major factor pushing this industry. Per the research firm, the industry is set to witness a compound annual growth rate of about 9% during the forecast period 2019-2023.

The biotechnology sector has been doing remarkably well this year, despite the lackluster performance by the broader healthcare sector. In fact, the SPDR S&P Biotech ETF (XBI) has outperformed the broader Health Care Select Sector SPDR Fund (XLV) on a year-to-date basis. The former has increased 15.2% while the latter has only moved 6.2% higher.

The increasing use of biotechnology reagents is a prominent reason behind the significant growth of the biotechnology sector. Reagents are a crucial element in the area of drug discovery and these have high demand in research, therapeutics and commercial applications.

This is why biotechnology reagents have attracted heavy investments in research and development lately and will continue to do so. In fact, reagents have a rather broad spectrum of application in stem cell research. These are used as biomarkers to visualize cell and tissue lines.

Stem cell research is growing by leaps and bounds, thanks to its many benefits that include treatment of an array of diseases. Therefore with the rise in stem cell research, demand for reagents is poised to rise as well.

We have therefore chosen four stocks that are revolutionizing the global biotechnology reagents market which investors could consider in their portfolio. All of these stocks carry a Zacks Rank #2 (Buy) or 3 (Hold).

Agilent Technologies carries a Zacks Rank #2. The company’s stock price has outperformed the Zacks Electronics – Testing Equipment market on an annualized basis (+10.4% vs +0.6%). The Zacks Consensus Estimate for its current-year earnings has risen 1% over the past 60 days. You can see the complete list of today’s Zacks #1 Rank stocks here.

Danaher carries a Zacks Rank #2. The company’s stock price has already outperformed the Zacks Diversified Operations market on a year-to-date basis (+34.9% vs -5.2%). The Zacks Consensus Estimate for its current-year earnings has risen 0.2% over the past 60 days.

Thermo Fisher Scientific carries a Zacks Rank #3. The company’s stock price has outperformed the Zacks Medical – Instruments market on a year-to-date basis (+21.3% vs -5.7%). The Zacks Consensus Estimate for its current-year earnings has risen 0.4% over the past 60 days.

General Electric carries a Zacks Rank #3. The stock price has outperformed the Zacks Diversified Operations market on a year-to-date basis (+24.5% vs +20.3%). The Zacks Consensus Estimate for its current-year earnings has risen 1.6% over the past 60 days.

Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.6% per year.

These 7 were selected because of their superior potential for immediate breakout.

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Danaher Corporation (DHR) : Free Stock Analysis Report
 
General Electric Company (GE) : Free Stock Analysis Report
 
Thermo Fisher Scientific Inc. (TMO) : Free Stock Analysis Report
 
Agilent Technologies, Inc. (A) : Free Stock Analysis Report
 
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Danaher Corporation (DHR) : Free Stock Analysis Report
 
General Electric Company (GE) : Free Stock Analysis Report
 
Thermo Fisher Scientific Inc. (TMO) : Free Stock Analysis Report
 
Agilent Technologies, Inc. (A) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research

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