Are These The Best Medical Diagnostic Stocks To Buy Right Now?

Medical diagnostic stocks are a branch of health care stocks in the stock market. As the name suggests, these are companies that specialize in diagnostic testing and equipment. The importance of a good diagnosis should not be understated. Accurate and efficient diagnostic procedures are essential for doctors to create a proper treatment plan that would fully benefit the patient. A fatal disease can be detected early with proper diagnostic testing and this could potentially save millions of lives.  

We can see companies such as Abbott Laboratories (NYSE: ABT) and Quidel Corporation (NASDAQ: QDEL) playing an important role in combating the global pandemic. For instance, Quidel which specializes in rapid diagnostic testing solutions would run COVID-19 testing programs to support the reopening of schools. It would even be responsible for staffing test locations, coordinating sample collection, running the tests, and ultimately reporting results to the Public Health departments. Given the importance of this industry right now, some would argue that it is a good time to add medical diagnostic stocks to your portfolio. If you share the same sentiment, here are 4 names to watch in the stock market today

Top Medical Diagnostic Stocks To Watch 

Laboratory Corp. of America Holdings

Firstly, we have the healthcare diagnostic company, Laboratory Corp. Put simply, it is a life sciences company that guides patient care, providing clinical laboratory and end-to-end drug development services. The company offers a variety of frequently requested testing through a network of primary and specialty laboratories across the United States. LH stock has been on a bullish run this year, showing gains of over 37%. 

Earlier this month, Laboratory Corp announced the availability of therascreen KRAS PCR Mutation Analysis. This is a companion diagnostic to identify patients with non-small cell lung cancer who are eligible for treatment with LUMAKRAS™ (sotorasib), a new treatment option developed by Amgen (NASDAQ: AMGN). With this, physicians will have immediate access to ensure every patient who may benefit from sotarasib is appropriately identified and treated. 

Besides that, the company is also helping to sequence thousands of complete coronavirus genomes each week from positive patient samples. It is utilizing Molecular Loop Biosciences, Inc’s SARS-CoV-2 Research Sequencing Panel to carry out the sequencing. This initiative is part of a U.S. Centers for Disease Control and Prevention (CDC) effort to track the spread of SARS-CoV-2 variants throughout the country. With so many recent developments, could we expect strong second-quarter financial results next week? If you think so, then LH stock could be worth adding to your watchlist right now.

LH stock
Source: TD Ameritrade TOS

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Co-Diagnostics Inc 

Following that, we have the molecular diagnostics company Co-Diagnostics. For starters, it is a company that specializes in diagnostic technology. Its reagents are used for diagnostic tests that function via the detection and/or analysis of nucleic acid molecules. Not to mention, it also sells diagnostics equipment from other manufacturers as self-contained lab systems (MDx device). 

CODX stock soared by over 21% on Thursday. Let us see what could be the catalyst for this movement. Yesterday, the company announced that it has added to its suite of intellectual property protection. It was awarded a patent from the Republic of Korea’s Intellectual Property Office for the Company’s CoPrimer™ technology. Co-Diagnostics also stated that most of its tests sold have been to repeat customers which indicates that its customers have come to depend on the quality of its CoPrimer assays. All these further validate the uniqueness and versatility of the CoPrimer platform. 

It is noteworthy that among the various diagnostic products using CoPrimer technology to have received regulatory clearance is the Logix Smart™ COVID-19 Test kit. In fact, the company has sold millions of the kits since the onset of the pandemic. It appears that it is effective in detecting all known strains which include the Delta variant of SARS-CoV-2. Now, it does seem like an exciting time for the company with its recent validation. So, would you bet on CODX stock to be the next big diagnostic stock?  

medical diagnostic stocks (CODX stock)
Source: TD Ameritrade TOS

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Thermo Fisher Scientific Inc 

Another top medical diagnostic company in the stock market today would be Thermo Fisher. It offers its products and services through various brands, including Thermo Scientific, Applied Biosystems, Invitrogen, Fisher Scientific, and Unity Lab Services. TMO stock has been trading sideways for most of the year. That said, we are starting to see a bullish price action over the past month.  

Recently, Thermo Fisher announced an expansion of its collaboration with My Green Lab. Thermo has set a goal to obtain Accountability, Consistency, and Transparency (ACT) labeling for its entire cold temperature storage portfolio by the end of 2021. The company expects to ACT label more than 1,200 additional SKUs. This would enable research, pharmaceutical, and clinical laboratories to achieve their sustainability objectives. Certainly, this is a commendable commitment by the company as environmental issues have been gaining traction lately. 

Furthermore, it has opened a new cGMP plasmid DNA manufacturing facility in Carlsbad. This would enable it to meet the rapidly growing demand for plasmid DNA-based therapies and vital mRNA-based vaccines. Also, it addresses the issue of demand outpacing supply for commercial plasmid DNA globally. All things considered, would you be watching TMO stock? 

top medical diagnostic stocks (TMO stock)
Source: TD Ameritrade TOS

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Quest Diagnostics Inc 

To sum up the list, we have Quest Diagnostics. Essentially, it is a provider of diagnostic information services. Its Diagnostic Information Services business develops and delivers diagnostic testing information and services. Meanwhile, its Diagnostic Solutions group includes its risk assessment services business, which offers solutions for insurers, and its healthcare information technology businesses. 

On Thursday, Quest announced its second-quarter earnings report. The company showed a faster than expected recovery of its core business. It reported revenue of $2.55 billion, up 39.5% year-over-year. Also, its diluted earnings per share came in at $4.96, representing an increase of a whopping 264.2%. This strong financial outlook puts the company in a strong position to continue its momentum for the remainder of 2021. 

The company also went into collaboration with CLX Health to provide access to COVID-19 molecular diagnostic testing. This aims at people who are seeking to attend live events nationwide or travel from the U.S. to destinations around the world. Given these positive developments for the company, would DGX stock be a top diagnostic stock to watch now?

DGX Stock
Source: TD Ameritrade TOS

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