From being the top picks of a star portfolio manager, to the admission that he made a mistake with one of them – diagnostic stocks have been on a rollercoaster. Much sought-after at one time, to being shunned by everyone. But every sector that goes through such cycles in the short term tends to see a recovery. The question is: How long before the business again catches the attention of the street? In the last few months, these stocks have been quietly inching upward. It is an extremely competitive sector, but consolidation appears imminent. Also, it is a sector that will always see demand.
