The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how Danaher (NYSE: DHR) and the rest of the research tools & consumables stocks fared in Q2.

The life sciences subsector specializing in research tools and consumables enables scientific discoveries across academia, biotechnology, and pharmaceuticals. These firms supply a wide range of essential laboratory products, ensuring a recurring revenue stream through repeat purchases and replenishment. Their business models benefit from strong customer loyalty, a diversified product portfolio, and exposure to both the research and clinical markets. However, challenges include high R&D investment to maintain technological leadership, pricing pressures from budget-conscious institutions, and vulnerability to fluctuations in research funding cycles. Looking ahead, this subsector stands to benefit from tailwinds such as growing demand for tools supporting emerging fields like synthetic biology and personalized medicine. There is also a rise in automation and AI-driven solutions in laboratories that could create new opportunities to sell tools and consumables. Nevertheless, headwinds exist. These companies tend to be at the mercy of supply chain disruptions and sensitivity to macroeconomic conditions that impact funding for research initiatives.

The 10 research tools & consumables stocks we track reported a satisfactory Q2. As a group, revenues beat analysts’ consensus estimates by 2.2% while next quarter’s revenue guidance was 0.5% below.

In light of this news, share prices of the companies have held steady as they are up 1.1% on average since the latest earnings results.

Danaher (NYSE: DHR)

Born from a real estate investment trust that transformed into a manufacturing powerhouse, Danaher (NYSE: DHR) is a global science and technology company that provides specialized equipment, software, and services for biotechnology, life sciences, and diagnostics.

Danaher reported revenues of $5.94 billion, up 3.4% year on year. This print exceeded analysts’ expectations by 1.7%. Overall, it was a satisfactory quarter for the company with a beat of analysts’ EPS estimates.

Interestingly, the stock is up 2% since reporting and currently trades at $191.85.

Is now the time to buy Danaher? Access our full analysis of the earnings results here, it’s free.

Best Q2: Sotera Health Company (NASDAQ: SHC)

With a critical role in ensuring the safety of millions of patients worldwide, Sotera Health (NASDAQGS:SHC) provides sterilization services, lab testing, and advisory services to ensure medical devices, pharmaceuticals, and food products are safe for use.

Sotera Health Company reported revenues of $294.3 million, up 6.4% year on year, outperforming analysts’ expectations by 6.8%. The business had a stunning quarter with an impressive beat of analysts’ organic revenue and full-year EPS guidance estimates.

Sotera Health Company achieved the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 39.9% since reporting. It currently trades at $15.73.

Is now the time to buy Sotera Health Company? Access our full analysis of the earnings results here, it’s free.

Weakest Q2: Bruker (NASDAQ: BRKR)

With roots dating back to the pioneering days of nuclear magnetic resonance technology, Bruker (NASDAQ: BRKR) develops and manufactures high-performance scientific instruments that enable researchers and industrial analysts to explore materials at microscopic, molecular, and cellular levels.

Bruker reported revenues of $797.4 million, flat year on year, falling short of analysts’ expectations by 1.5%. It was a disappointing quarter as it posted a significant miss of analysts’ full-year EPS guidance estimates.

Bruker delivered the weakest performance against analyst estimates and weakest full-year guidance update in the group. As expected, the stock is down 16.5% since the results and currently trades at $31.70.

Read our full analysis of Bruker’s results here.

Agilent (NYSE: A)

Originally spun off from Hewlett-Packard in 1999 as its measurement and analytical division, Agilent Technologies (NYSE: A) provides analytical instruments, software, services, and consumables for laboratory workflows in life sciences, diagnostics, and applied chemical markets.

Agilent reported revenues of $1.74 billion, up 10.1% year on year. This result beat analysts’ expectations by 4.3%. Overall, it was a strong quarter as it also put up an impressive beat of analysts’ organic revenue estimates and full-year revenue guidance beating analysts’ expectations.

Agilent scored the fastest revenue growth and highest full-year guidance raise among its peers. The stock is up 3.6% since reporting and currently trades at $123.04.

Read our full, actionable report on Agilent here, it’s free.

Mettler-Toledo (NYSE: MTD)

With roots dating back to the precision balance innovations of Swiss engineer Erhard Mettler, Mettler-Toledo (NYSE: MTD) manufactures precision weighing instruments, analytical equipment, and product inspection systems used in laboratories, industrial settings, and food retail.

Mettler-Toledo reported revenues of $983.2 million, up 3.9% year on year. This number topped analysts’ expectations by 2.9%. It was a strong quarter as it also recorded an impressive beat of analysts’ organic revenue estimates and a decent beat of analysts’ full-year EPS guidance estimates.

The stock is up 2% since reporting and currently trades at $1,260.

Read our full, actionable report on Mettler-Toledo here, it’s free.

Market Update

As a result of the Fed’s rate hikes in 2022 and 2023, inflation has come down from frothy levels post-pandemic. The general rise in the price of goods and services is trending towards the Fed’s 2% goal as of late, which is good news. The higher rates that fought inflation also didn't slow economic activity enough to catalyze a recession. So far, soft landing. This, combined with recent rate cuts (half a percent in September 2024 and a quarter percent in November 2024) have led to strong stock market performance in 2024. The icing on the cake for 2024 returns was Donald Trump’s victory in the U.S. Presidential Election in early November, sending major indices to all-time highs in the week following the election. Still, debates around the health of the economy and the impact of potential tariffs and corporate tax cuts remain, leaving much uncertainty around 2025.

Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Quality Compounder Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.