We recently published a list of 12 Best Scientific Instruments Stocks to Buy Right Now. In this article, we are going to take a look at where Teledyne Technologies Incorporated (NYSE:TDY) stands against other best scientific instruments stocks to buy right now.

The global scientific instruments market has been experiencing steady growth and is expected to continue its upward trajectory in the coming years. According to a recent report by Expert Market Research, the market was valued at approximately $39.94 billion in 2024 and is forecasted to expand at a compound annual growth rate (CAGR) of 4.50% between 2025 and 2034, reaching a projected value of  $62.03 billion by 2034. This growth is attributed to several critical factors driving the demand for scientific instruments across various industries, including healthcare, biotechnology, pharmaceuticals, and research and development.

Influence of Healthcare Investments on Scientific Instruments Demand:

The global scientific instruments market is significantly influenced by substantial investments in healthcare, particularly in the development of advanced diagnostic and analytical tools. As per the NHE factsheet in 2023, U.S. healthcare spending reached $4.9 trillion, accounting for 17.6% of the nation’s GDP.  Additionally, the rapid advancements in biotechnology and pharmaceuticals are significantly influencing market growth. With the continuous innovation in research, there is an increasing need for precise and reliable instruments to support testing and analysis, particularly in laboratories and clinical environments. In 2023, the top 20 global pharmaceutical companies collectively spent $145 billion on R&D, up from $139 billion in 2022, as reported by Deloitte.

Pharmaceutical Industry’s Focus on Drug Quality and Biosimilar Development:

Pharmaceutical companies are focusing on improving drug quality and developing better products, necessitating the use of advanced equipment for analysis and testing. The development and marketing of biosimilars require significant investment, with costs ranging from $100 million to $250 million and development timelines of 7 to 8 years, according to a report by the National Library of Medicine.

Technological Advancements Shaping the Scientific Instruments Market:

Technological advancements in scientific instruments are playing a significant role in shaping the market. In fields like genomics, personalized medicine, and neuroscience, instruments with enhanced capabilities, such as higher precision, automation, and the ability to handle complex data, are becoming increasingly essential. For example, next-generation sequencing technologies have revolutionized genomics by enabling rapid and accurate analysis of genetic data and facilitating personalized medicine approaches.

Our Methodology

To compile the list of the best scientific instruments stocks to invest in, we screened for companies listed on the New York Stock Exchange and Nasdaq that are involved in the scientific instruments industry. Next, we cross-referenced these stocks with Insider Monkey’s Q4 2024 hedge fund database to identify which companies had significant institutional backing. The stocks were then ranked according to the number of hedge fund investors holding positions in them.

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 363.5% since May 2014, beating its benchmark by 208 percentage points (see more details here).

A technician in a lab coat calibrating advanced electronic components.

Teledyne Technologies Incorporated (NYSE:TDY)

Number of Hedge Fund Holders: 45

Teledyne Technologies Incorporated (NYSE:TDY) is a leading provider of enabling technologies across several industrial growth markets, including environmental monitoring, electronics design, and factory automation. The company’s instrumentation segment focuses on providing monitoring and control solutions for marine, industrial, and environmental sectors.

In December 2024, Teledyne Technologies Incorporated (NYSE:TDY) completed the acquisition of Micropac Industries for $57.3 million, enhancing its microelectronic and optoelectronic product offerings for the military, aerospace, and medical sectors. In February 2025, the company also acquired key aerospace and defense electronics businesses from Excelitas Technologies for $710 million, adding advanced optics and custom energies to its portfolio. These moves reflect its ongoing commitment to expanding its technological and industrial footprint.

Teledyne Technologies Incorporated (NYSE:TDY) reported record fourth-quarter sales of $1.5 billion, a 5.4% increase from the previous year. However, the company faced a 38.6% decline in net income, which came in at $198.5 million, or $4.20 per share, primarily due to tax expenses and acquisition-related costs. Non-GAAP net income, excluding these items, rose slightly to $260.9 million, or $5.52 per share, compared to $260.5 million, or $5.44 per share, in Q4 2023. The company delivered a strong free cash flow of $328 million, reflecting its solid financial position.

James Ricchiuti from Needham reiterated his Strong Buy rating on Teledyne Technologies (NYSE:TDY), with a target price of $585, representing a potential upside of 16.77%.

Overall, TDY ranks 7th on our list of best scientific instruments stocks to buy right now. While we acknowledge the potential for TDY as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than TDY but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.