From being one of the most sought after sectors during 2020 to 2021 and trading at extremely high valuations, diagnostic stocks have been underperforming the market for a large part of the last three years. Today, hardly anyone on the street talks about diagnostic stocks and sometimes not being in the news is probably the best thing for stock. In this period when there is no chatter on the street, a number of diagnostic stocks have been making a quiet comeback in the last six months. Because this performance is coming after a long phase of the valuation adjustment, it is probably a time to look at them without any strong positive and negative bias as the bellwether stock has shown improvement.
