Zacks Industry Outlook Highlights Mettler-Toledo International and Harvard Bioscience

For Immediate ReleaseChicago, IL – October 31, 2024 – Today, Zacks Equity Research discusses Mettler-Toledo International MTD and Harvard Bioscience HBIO,Industry: Scientific InstrumentsLink: https://www.zacks.com/commentary/2359914/2-instruments-stocks-to-watch-from-a-challenging-industryThe Zacks Instruments - Scientific industry is suffering from challenging macroeconomic conditions. The continuing war in Ukraine and the conflict in the Middle East increase the risk of rising energy prices and sluggishness in the European economy, which are headwinds. However, increasing healthcare spending, driven by aging demography, and continued innovation in the pharma and life sciences end markets are positives.Higher demand for generic drugs and biosimilars is driving growth for scientific tool and apparatus providers. Industry participants like Mettler-Toledo International and Harvard Bioscience are gaining from the growing testing needs of newer biological drugs. The increasing demand for automated solutions that help in ensuring compliance is encouraging. AI continues to drive demand for semiconductor metrology and advanced packaging tools.Industry DescriptionThe Zacks Instruments - Scientific industry comprises companies offering scientific instruments, analytical tools, diagnostic solutions, precision instruments & services, and test & sensor solutions. The primary end markets served by the industry participants are life science research in academia, medical schools and government, pharmaceuticals and biotechnology, microbiology and diagnostics, nanotechnology, and materials science research.A few companies also serve food and nutritional safety, as well as biochemical and industrial spaces. Most industry participants are under stringent regulatory scrutiny worldwide. They have to adhere to the U.S. Food and Drug Administration and the U.S. Environmental Protection Agency norms, as well as rules set by other global regulatory bodies, for serving highly regulated end-markets like life sciences and pharma.3 Trends Shaping the Instruments - Scientific Industry's FutureStrong End-Market Demand: The industry is benefiting from strong end-market demand, particularly from the life science, pharmaceutical and academic markets. Increasing demand for generic drugs and biosimilars is driving growth for scientific tool and apparatus providers. Pharma companies are focused on rapidly growing areas like proteomics and phenomics, biopharma and applied, microbiology and diagnostics, and neuroscience and cell microscopy. This creates significant demand for the instruments provided by industry participants.Aging Demography Driving Spending: Socioeconomic factors like aging demography and increasing environmental regulations are fueling the demand for scientific measurement solutions. Robust worldwide healthcare spending is another major growth driver.Emerging Market Prospects Solid: The industry is gaining from increasing exposure to developing economies like China and India. Prospects in China are huge as regulators attempt to raise the country's biopharma industry to global standards. Efforts to improve the country's drug development process and production quality are noteworthy. Robust investments in segments like lithium-ion batteries and biopharma are driving prospects. The growing demand for automation is a long-term driver in China. These factors result in a strong demand for instruments.Zacks Industry Rank Indicates Dim ProspectsThe Zacks Instruments - Scientific industry is housed within the broader Zacks Computer and Technology sector. It carries a Zacks Industry Rank #189, which places it in the bottom 25% of more than 250 Zacks industries.The group's Zacks Industry Rank, which is the average of the Zacks Rank of all the member stocks, indicates bearish near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than two to one.The industry's position in the bottom 50% of the Zacks-ranked industries is a result of a negative earnings outlook for the constituent companies in aggregate. Looking at the aggregate earnings estimate revisions, analysts are pessimistic about this group's earnings growth potential. Since Oct. 31, 2023, the industry's earnings estimates have moved down by 9.8%.Given the bearish near-term outlook, there are only a few stocks in the industry worth watching. But before we present those stocks that you may want to consider for your portfolio, let's take a look at the industry's recent stock-market performance and valuation picture.Industry Lags Sector and S&P 500The Zacks Instruments – Scientific industry has underperformed the broader Zacks Computer and Technology sector and the S&P 500 over the past year.The industry has gained 22% over this period compared with the S&P 500's growth of 39.4% and the broader sector's return of 48.3%.Industry's Current ValuationOn the basis of the forward 12-month P/E, which is a commonly used multiple for valuing scientific instrument stocks, we see that the industry is currently trading at 21.57X compared with the S&P 500's 22.05X and the Zacks Computer and Technology sector's 26.84X.Over the last five years, the industry has traded as high as 43.21X and as low as 21.57X, with a median of 29.31X.2 Scientific Instruments Providers to WatchMettler-Toledo: This Zacks Rank #3 (Hold) company is benefiting from improving demand across the Laboratory segment. The solid execution of its Spinnaker and SternDrive programs is likely to aid top-line growth. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.Mettler-Toledo's portfolio strength, cost-cutting efforts, margin and productivity initiatives, and robust sales and marketing strategies are driving prospects.Shares of this Polaris Parkway, Columbus-based company have gained 6.8% in the year-to-date period. The Zacks Consensus Estimate for Mettler-Toledo's current-year earnings has decreased by a penny to $40.34 per share in the past 30 days.Harvard Bioscience: This Holliston, MA-based company has been suffering from supply chain issues, which it expects will be resolved in the second half of the year. Ongoing investments in new products are expected to benefit HBIO's top-line growth.The Zacks Consensus Estimate for HBIO's current-year earnings has been unchanged at 20 cents per share over the past 30 days. Shares of this Zacks Rank #3 company have declined 54.7% year to date.Why Haven't You Looked at Zacks' Top Stocks?Since 2000, our top stock-picking strategies have blown away the S&P's +7.0 average gain per year. Amazingly, they soared with average gains of +44.9%, +48.4% and +55.2% per year.Today you can access their live picks without cost or obligation.See Stocks Free >>Join us on Facebook: https://www.facebook.com/ZacksInvestmentResearch/Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.Media ContactZacks Investment Research800-767-3771 ext. 9339support@zacks.comhttps://www.zacks.comPast performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance  for information about the performance numbers displayed in this press release.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>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 report Mettler-Toledo International, Inc. (MTD): Free Stock Analysis Report Harvard Bioscience, Inc. (HBIO): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks