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 Bio-Techne (NASDAQ: TECH) and the rest of the research tools & consumables stocks fared in Q3.

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 mixed Q3. As a group, revenues beat analysts’ consensus estimates by 1.1% while next quarter’s revenue guidance was 1.3% below.

In light of this news, share prices of the companies have held steady as they are up 1.3% on average since the latest earnings results.

Bio-Techne (NASDAQ: TECH)

With a catalog of hundreds of thousands of specialized biological products used in laboratories worldwide, Bio-Techne (NASDAQ: TECH) develops and manufactures specialized reagents, instruments, and services that help researchers study biological processes and enable diagnostic testing and cell therapy development.

Bio-Techne reported revenues of $286.6 million, down 1% year on year. This print fell short of analysts’ expectations by 1.7%. Overall, it was a softer quarter for the company with a miss of analysts’ revenue estimates.

"The Bio-Techne team once again executed with focus and agility in a dynamic operating environment," said Kim Kelderman, President and Chief Executive Officer of Bio-Techne.

Bio-Techne delivered the weakest performance against analyst estimates of the whole group. Unsurprisingly, the stock is down 4.1% since reporting and currently trades at $58.57.

Read our full report on Bio-Techne here, it’s free for active Edge members.

Best Q3: 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 $311.3 million, up 9.1% year on year, outperforming analysts’ expectations by 2.6%. The business had an exceptional quarter with an impressive beat of analysts’ full-year EPS guidance estimates.

The market seems happy with the results as the stock is up 6.9% since reporting. It currently trades at $17.75.

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

Weakest Q3: Avantor (NYSE: AVTR)

With roots dating back to 1904 and embedded in virtually every stage of scientific research and production, Avantor (NYSE: AVTR) provides mission-critical products, materials, and services to customers in biopharma, healthcare, education, and advanced technology industries.

Avantor reported revenues of $1.62 billion, down 5.3% year on year, falling short of analysts’ expectations by 1.4%. It was a softer quarter as it posted a slight miss of analysts’ revenue estimates and a miss of analysts’ organic revenue estimates.

Avantor delivered the slowest revenue growth in the group. As expected, the stock is down 23.9% since the results and currently trades at $11.47.

Read our full analysis of Avantor’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 $1.86 billion, up 9.4% year on year. This number beat analysts’ expectations by 1.5%. Overall, it was a strong quarter as it also produced a solid beat of analysts’ organic revenue estimates and a narrow beat of analysts’ revenue estimates.

Agilent scored the fastest revenue growth among its peers. The stock is down 10.6% since reporting and currently trades at $137.56.

Read our full, actionable report on Agilent here, it’s free for active Edge members.

Thermo Fisher (NYSE: TMO)

With over 14,000 sales personnel and a portfolio spanning more than 2,500 technology manufacturers, Thermo Fisher Scientific (NYSE: TMO) provides scientific equipment, reagents, consumables, software, and laboratory services to pharmaceutical, biotech, academic, and healthcare customers worldwide.

Thermo Fisher reported revenues of $11.12 billion, up 4.9% year on year. This result surpassed analysts’ expectations by 1.9%. It was a strong quarter as it also recorded a decent beat of analysts’ revenue estimates and a beat of analysts’ EPS estimates.

The stock is up 4.5% since reporting and currently trades at $583.14.

Read our full, actionable report on Thermo Fisher here, it’s free for active Edge members.

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.