10 Best Medical Imaging Diagnostics for February 2026
Welcome to the Value Sense Blog, your resource for insights on the stock market! At Value Sense, we focus on intrinsic value tools and offer stock ideas with undervalued companies. Dive into our research products and learn more about our unique approach at valuesense.io
Explore diverse stock ideas covering technology, healthcare, and commodities sectors. Our insights are crafted to help investors spot opportunities in undervalued growth stocks, enhancing potential returns. Visit us to see evaluations and in-depth market research.
Market Overview & Selection Criteria
The healthcare and technology sectors continue to show resilience amid market volatility, with diagnostics, biotech, and EV innovators driving innovation in medical imaging, genetic testing, and energy services. Value Sense's automated fundamental analysis platform selected these 10 top stock picks based on intrinsic value calculations, quality ratings, revenue growth, and free cash flow metrics. Stocks were filtered using machine learning-driven screens for undervalued opportunities where current market prices trade below estimated intrinsic values, prioritizing high gross margins, ROIC above industry averages where possible, and diversified exposure across healthcare subsectors like diagnostics and life sciences, plus select tech plays. This watchlist emphasizes best value stocks in healthcare stock picks, focusing on companies with strong financial health for long-term portfolio consideration.
Featured Stock Analysis
Stock #1: Agilent Technologies, Inc. (A)
| Metric | Value |
|---|---|
| Market Cap | $37.5B |
| Quality Rating | 6.8 |
| Intrinsic Value | $104.5 |
| 1Y Return | -11.6% |
| Revenue | $1,861.0M |
| Free Cash Flow | $1,466.0M |
| Revenue Growth | (71.4%) |
| FCF margin | 78.8% |
| Gross margin | 53.2% |
| ROIC | 4.9% |
| Total Debt to Equity | 49.8% |
Investment Thesis
Agilent Technologies, Inc. (A) stands out in the healthcare diagnostics space with a market cap of $37.5B and a solid quality rating of 6.8 from Value Sense analysis. Its intrinsic value is estimated at $104.5, suggesting potential undervaluation relative to current trading levels. The company reports revenue of $1,861.0M, bolstered by a remarkable FCF margin of 78.8% and gross margin of 53.2%, alongside free cash flow of $1,466.0M. Despite a 1Y return of -11.6% and unusual revenue growth of 71.4%, its ROIC of 4.9% and total debt to equity of 49.8% indicate a stable foundation for life sciences tools and diagnostics growth. This positions A as a key pick for investors analyzing A stock analysis in undervalued healthcare plays.
Key Catalysts
- Exceptional FCF margin of 78.8% supports reinvestment in R&D for diagnostics innovation.
- Strong gross margin of 53.2% reflects pricing power in high-tech instruments.
- Quality rating 6.8 highlights superior financial health in competitive sector.
Risk Factors
- Negative revenue growth 71.4% may signal short-term demand challenges.
- 1Y return -11.6% indicates recent underperformance amid market pressures.
- Moderate ROIC 4.9% trails some peers in capital efficiency.
Stock #2: GE HealthCare Technologies Inc. (GEHC)
| Metric | Value |
|---|---|
| Market Cap | $35.7B |
| Quality Rating | 5.2 |
| Intrinsic Value | $134.1 |
| 1Y Return | -11.8% |
| Revenue | $20.2B |
| Free Cash Flow | $463.0M |
| Revenue Growth | 3.5% |
| FCF margin | 2.3% |
| Gross margin | 40.8% |
| ROIC | 10.7% |
| Total Debt to Equity | 19.6% |
Investment Thesis
GE HealthCare Technologies Inc. (GEHC), with a $35.7B market cap, earns a quality rating of 5.2 and an intrinsic value of $134.1, pointing to undervaluation in medical imaging and diagnostics. Key metrics include revenue of $20.2B, free cash flow of $463.0M, revenue growth of 3.5%, and FCF margin of 2.3%, supported by a healthy gross margin of 40.8% and ROIC of 10.7%. Total debt to equity stands at 19.6%, offering balance sheet strength despite a 1Y return of -11.8%. This analysis frames GEHC as an educational case for steady growth in GEHC stock analysis within healthcare essentials.
Key Catalysts
- Robust ROIC 10.7% demonstrates efficient capital use in imaging tech.
- Low debt to equity 19.6% provides flexibility for expansion.
- Steady revenue growth 3.5% in a large-scale operation.
Risk Factors
- Low FCF margin 2.3% limits aggressive growth funding.
- 1Y return -11.8% reflects sector headwinds.
- Quality rating 5.2 suggests room for operational improvements.
Stock #3: Natera, Inc. (NTRA)
| Metric | Value |
|---|---|
| Market Cap | $31.6B |
| Quality Rating | 6.0 |
| Intrinsic Value | $84.7 |
| 1Y Return | 31.1% |
| Revenue | $2,116.7M |
| Free Cash Flow | $106.1M |
| Revenue Growth | 38.2% |
| FCF margin | 5.0% |
| Gross margin | 63.7% |
| ROIC | (57.5%) |
| Total Debt to Equity | 14.8% |
Investment Thesis
Natera, Inc. (NTRA) boasts a $31.6B market cap, quality rating of 6.0, and intrinsic value of $84.7, highlighting value in genetic testing. Metrics show revenue of $2,116.7M, free cash flow $106.1M, explosive revenue growth of 38.2%, FCF margin 5.0%, and top-tier gross margin 63.7%. However, ROIC is 57.5% and 1Y return 31.1%, with low debt to equity 14.8%. NTRA offers insights into high-growth biotech for NTRA analysis seekers.
Key Catalysts
- Impressive revenue growth 38.2% fuels cell-free DNA testing expansion.
- High gross margin 63.7% supports scalability.
- Positive 1Y return 31.1% shows market momentum.
Risk Factors
- Negative ROIC 57.5% indicates capital inefficiency.
- Modest FCF margin 5.0% amid rapid scaling.
- Growth-dependent model vulnerable to reimbursement changes.
Stock #4: Quest Diagnostics Incorporated (DGX)
| Metric | Value |
|---|---|
| Market Cap | $20.7B |
| Quality Rating | 6.3 |
| Intrinsic Value | $359.6 |
| 1Y Return | 13.9% |
| Revenue | $10.9B |
| Free Cash Flow | $1,393.0M |
| Revenue Growth | 13.7% |
| FCF margin | 12.8% |
| Gross margin | 33.3% |
| ROIC | 9.0% |
| Total Debt to Equity | 86.5% |
Investment Thesis
Quest Diagnostics Incorporated (DGX) features a $20.7B market cap, quality rating 6.3, and standout intrinsic value $359.6, signaling deep undervaluation in lab services. It reports revenue $10.9B, free cash flow $1,393.0M, revenue growth 13.7%, FCF margin 12.8%, gross margin 33.3%, ROIC 9.0%, and 1Y return 13.9%, though debt to equity is 86.5%. This provides balanced DGX analysis for diagnostic investors.
Key Catalysts
- Strong FCF $1,393.0M and 12.8% margin enable dividends and buybacks.
- Solid revenue growth 13.7% in essential testing.
- Attractive intrinsic value $359.6 vs. market price.
Risk Factors
- Elevated debt to equity 86.5% increases leverage risk.
- Lower gross margin 33.3% vs. biotech peers.
- Regulatory pressures in diagnostics.
Stock #5: Exact Sciences Corporation (EXAS)
| Metric | Value |
|---|---|
| Market Cap | $19.4B |
| Quality Rating | 6.6 |
| Intrinsic Value | $71.8 |
| 1Y Return | 82.7% |
| Revenue | $3,082.0M |
| Free Cash Flow | $247.1M |
| Revenue Growth | 14.5% |
| FCF margin | 8.0% |
| Gross margin | 67.4% |
| ROIC | (22.3%) |
| Total Debt to Equity | 101.3% |
Investment Thesis
Exact Sciences Corporation (EXAS) has a $19.4B market cap, quality rating 6.6, and intrinsic value $71.8. Key figures: revenue $3,082.0M, FCF $247.1M, revenue growth 14.5%, FCF margin 8.0%, gross margin 67.4%, negative ROIC 22.3%, strong 1Y return 82.7%, and debt to equity 101.3%. Ideal for EXAS stock picks in cancer screening.
Key Catalysts
- Exceptional 1Y return 82.7% driven by screening adoption.
- High gross margin 67.4% in molecular diagnostics.
- Quality rating 6.6 underscores business quality.
Risk Factors
- Negative ROIC 22.3% from heavy investments.
- High debt to equity 101.3% strains balance sheet.
- Execution risks in growth phase.
Most investors waste time on the wrong metrics. We've spent 10,000+ hours perfecting our value investing engine to find what actually matters.
Want to see what we'll uncover next - before everyone else does?
Find Hidden Gems First!
Stock #6: Guardant Health, Inc. (GH)
| Metric | Value |
|---|---|
| Market Cap | $13.9B |
| Quality Rating | 5.4 |
| Intrinsic Value | $52.3 |
| 1Y Return | 128.4% |
| Revenue | $902.6M |
| Free Cash Flow | ($262.2M) |
| Revenue Growth | 30.4% |
| FCF margin | (29.1%) |
| Gross margin | 63.8% |
| ROIC | (92.7%) |
| Total Debt to Equity | (366.7%) |
Investment Thesis
Guardant Health, Inc. (GH) shows $13.9B market cap, quality rating 5.4, intrinsic value $52.3. Metrics include revenue $902.6M, negative FCF $262.2M, revenue growth 30.4%, FCF margin 29.1%, gross margin 63.8%, ROIC 92.7%, and stellar 1Y return 128.4%, with debt to equity 366.7%. Highlights liquid biopsy potential in GH analysis.
Key Catalysts
- Rapid revenue growth 30.4% in precision oncology.
- Massive 1Y return 128.4% reflects hype and adoption.
- Strong gross margin 63.8% for tech platform.
Risk Factors
- Negative FCF $262.2M and margin 29.1% signal cash burn.
- Poor ROIC 92.7% and negative equity.
- High volatility in early-stage biotech.
Stock #7: Revvity, Inc. (RVTY)
| Metric | Value |
|---|---|
| Market Cap | $12.7B |
| Quality Rating | 5.8 |
| Intrinsic Value | $138.6 |
| 1Y Return | -14.2% |
| Revenue | $2,813.4M |
| Free Cash Flow | $497.5M |
| Revenue Growth | 3.4% |
| FCF margin | 17.7% |
| Gross margin | 50.5% |
| ROIC | 3.2% |
| Total Debt to Equity | 47.8% |
Investment Thesis
Revvity, Inc. (RVTY) offers $12.7B market cap, quality rating 5.8, intrinsic value $138.6. Data: revenue $2,813.4M, FCF $497.5M, growth 3.4%, FCF margin 17.7%, gross margin 50.5%, ROIC 3.2%, 1Y return -14.2%, debt to equity 47.8%. Valuable for life sciences tools in RVTY stock analysis.
Key Catalysts
- Healthy FCF margin 17.7% and $497.5M FCF.
- Solid gross margin 50.5% in discovery services.
- Undervalued intrinsic value $138.6.
Risk Factors
- Weak 1Y return -14.2%.
- Low ROIC 3.2%.
- Slow revenue growth 3.4%.
Stock #8: NIO Inc. (NIO)
| Metric | Value |
|---|---|
| Market Cap | $11.7B |
| Quality Rating | 5.2 |
| Intrinsic Value | $6.6 |
| 1Y Return | 5.9% |
| Revenue | CN¥72.5B |
| Free Cash Flow | CN¥0.0 |
| Revenue Growth | 14.9% |
| FCF margin | 0.0% |
| Gross margin | 11.2% |
| ROIC | (72.7%) |
| Total Debt to Equity | 228.7% |
Investment Thesis
NIO Inc. (NIO), a tech EV outlier, has $11.7B market cap, quality rating 5.2, intrinsic value $6.6. Figures: revenue CN¥72.5B, FCF CN¥0.0, growth 14.9%, FCF margin 0.0%, gross margin 11.2%, ROIC 72.7%, 1Y return 5.9%, high debt to equity 228.7%. Contrasts healthcare with China EV exposure in NIO analysis.
Key Catalysts
- Revenue growth 14.9% in premium EVs.
- Expanding battery swap network.
- Global market penetration potential.
Risk Factors
- Zero FCF and negative ROIC 72.7%.
- Elevated debt 228.7%.
- Low gross margin 11.2% amid competition.
Stock #9: Qiagen N.V. (QGEN)
| Metric | Value |
|---|---|
| Market Cap | $11.5B |
| Quality Rating | 6.7 |
| Intrinsic Value | $63.3 |
| 1Y Return | 20.6% |
| Revenue | $2,070.8M |
| Free Cash Flow | $359.3M |
| Revenue Growth | 5.3% |
| FCF margin | 17.3% |
| Gross margin | 63.9% |
| ROIC | 8.8% |
| Total Debt to Equity | 0.0% |
Investment Thesis
Qiagen N.V. (QGEN) features $11.5B market cap, top quality rating 6.7, intrinsic value $63.3. Metrics: revenue $2,070.8M, FCF $359.3M, growth 5.3%, FCF margin 17.3%, gross margin 63.9%, ROIC 8.8%, 1Y return 20.6%, zero debt to equity. Strong for molecular diagnostics in QGEN analysis.
Key Catalysts
- No debt enables agile growth.
- High FCF margin 17.3% and gross margin 63.9%.
- Positive 1Y return 20.6% and ROIC 8.8%.
Risk Factors
- Modest revenue growth 5.3%.
- Dependence on consumables sales.
- Currency risks as non-US firm.
Stock #10: NOV Inc. (NOV)
| Metric | Value |
|---|---|
| Market Cap | $6,821.0M |
| Quality Rating | 5.8 |
| Intrinsic Value | $24.8 |
| 1Y Return | 26.8% |
| Revenue | $8,775.0M |
| Free Cash Flow | $877.0M |
| Revenue Growth | (1.4%) |
| FCF margin | 10.0% |
| Gross margin | 20.5% |
| ROIC | 7.4% |
| Total Debt to Equity | 36.2% |
Investment Thesis
NOV Inc. (NOV), in energy services, has $6,821.0M market cap, quality rating 5.8, intrinsic value $24.8. Data: revenue $8,775.0M, FCF $877.0M, growth 1.4%, FCF margin 10.0%, gross margin 20.5%, ROIC 7.4%, 1Y return 26.8%, debt 36.2%. Adds commodities diversification to NOV stock picks.
Key Catalysts
- Strong 1Y return 26.8% from oilfield recovery.
- Solid FCF $877.0M and 10.0% margin.
- Improving ROIC 7.4%.
Risk Factors
- Slight revenue decline 1.4%.
- Cyclical energy exposure.
- Lower gross margin 20.5%.
Portfolio Diversification Insights
These 10 best stocks cluster heavily in healthcare stock picks (A, GEHC, NTRA, DGX, EXAS, GH, RVTY, QGEN) for diagnostics and biotech exposure, providing 80% allocation to resilient medical tech with high gross margins averaging ~55%. NIO adds Chinese EV growth, while NOV brings energy services stability, creating sector balance across healthcare 80%, tech/EV 10%, and commodities 10%. High-growth names like NTRA (38.2% rev growth) complement cash-generative picks like DGX ($1.4B FCF), reducing volatility. Cross-references show synergy: diagnostics leaders (A, QGEN) pair with innovators (GH, EXAS) for broad undervalued stocks coverage, optimizing for investment opportunities in value portfolios.
Market Timing & Entry Strategies
Consider entry during sector pullbacks, such as post-earnings dips for high-ROIC names like GEHC 10.7% or when intrinsic values exceed prices by 20%+ (e.g., DGX at $359.6). Monitor revenue growers (NTRA 38.2%, GH 30.4%) amid positive macro healthcare spending. Use dollar-cost averaging for volatile picks like NIO, targeting support levels near intrinsic values. Track FCF trends for cash-rich firms (A 78.8% margin) and avoid overexposure pre-Fed decisions impacting debt-heavy stocks (EXAS 101.3%). Value Sense backtesting suggests optimal windows in Q1 healthcare rallies.
Explore More Investment Opportunities
For investors seeking undervalued companies with high fundamental quality, our analytics team provides curated stock lists:
📌 50 Undervalued Stocks (Best overall value plays for 2025)
📌 50 Undervalued Dividend Stocks (For income-focused investors)
📌 50 Undervalued Growth Stocks (High-growth potential with strong fundamentals)
🔍 Check out these stocks on the Value Sense platform for free!
More Articles You Might Like
- Nelson Peltz - Trian Fund Management Portfolio Q3'2025: Top Holdings & Recent Changes
- Principles for Dealing with the Changing World Order by Ray Dalio
- The Ascent of Money by Niall Ferguson
- Principles for Navigating Big Debt Crises by Ray Dalio
- Influence: The Psychology of Persuasion by Robert B. Cialdini Ph.D.
FAQ Section
How were these stocks selected?
These top stocks to buy now were chosen via Value Sense's machine learning screens focusing on intrinsic value upside, quality ratings above 5.0, and strong margins in healthcare/tech, ensuring diversified stock watchlist potential.
What's the best stock from this list?
Qiagen N.V. (QGEN) leads with a 6.7 quality rating, zero debt, 17.3% FCF margin, and 20.6% 1Y return, making it a standout in best value stocks for balanced risk-reward.
Should I buy all these stocks or diversify?
Diversify across the list's healthcare core (e.g., A, DGX for stability; NTRA, GH for growth) and add NIO/NOV for non-correlated exposure, aligning with Value Sense's portfolio tools for optimal investment ideas.
What are the biggest risks with these picks?
Key concerns include negative ROIC in growth stocks (NTRA -57.5%, GH -92.7%), high debt (NIO 228.7%, EXAS 101.3%), and sector-specific volatility like EV competition or diagnostics regulation.
When is the best time to invest in these stocks?
Target entries when prices dip below intrinsic values (e.g., DGX $359.6, RVTY $138.6), during healthcare tailwinds, or post-earnings for FCF confirmations, using Value Sense screeners for timing signals.