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.

Promising Growth for Biotechnology Reagents

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.

Trends Driving Demand for Reagents

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.

Our Choices

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, Inc. A is an analytical laboratory instrument manufacturing company. The companys Dako brand offers high-quality reagents, diagnostic antibodies, instruments and software solutions that assist in the treatment of cancer patients.

Agilent Technologies carries a Zacks Rank #2. The companys stock price has outperformed the Zacks Electronics - Testing Equipmentmarket 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 seethe complete list of todays Zacks #1 Rank stocks here.

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Danaher Corporation DHR is a conglomerate and manufacturer of medical products. The companys life sciences wing offers sophisticated equipment for biological research.

Danaher carries a Zacks Rank #2. The companys stock price has already outperformed the Zacks Diversified Operationsmarket 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 Inc.TMO is a manufacturer of analytical instruments, equipment and reagents.

Thermo Fisher Scientific carries a Zacks Rank #3. The companys stock price has outperformed the Zacks Medical - Instrumentsmarket 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 Companys GE life sciences wing operates in the cell and gene therapy industry. The company offers end-to-end solutions that include software and equipment that drive uniformity to dependable reagents.

General Electric carries a Zacks Rank #3. The stock price has outperformed the Zacks Diversified Operationsmarket 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.

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Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free reportDanaher Corporation (DHR) : Free Stock Analysis ReportGeneral Electric Company (GE) : Free Stock Analysis ReportThermo Fisher Scientific Inc. (TMO) : Free Stock Analysis ReportAgilent Technologies, Inc. (A) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research

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4 Stocks to Focus on Global Biotechnology Reagents Market - Yahoo Finance