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    Process of overvaluations getting readjusted over? 4 stocks from diagnostics sector with upside potential of 18-23%

    Synopsis

    There are some businesses whose underlying nature is such that they don't have any sudden spike in their profits. However at the same time, there is constant growth. The growth could be because of many reasons, it may be because of the fact that penetration of that good or service is very low and over a period of time as it improves, both top and bottom line keep moving upward. In some cases, it could be because of the movement of business from the unorganized sector to the organized sector. It could also be because of the fact that the need is such that if required spending on it cannot be postponed. In the case of diagnostic business, it is all the three. But there is another side to it, how the street is treating these businesses when it comes to valuations. In case of diagnostics, from dizzy heights of valuation in 2021 to today where it is being seen as a sector where there is nothing worth looking at this point of time due to multiple issues. Yes, there are real issues with the business, but not a bad time to get them on watchlist at least.

    In the last four years, many sectors have made a comeback and there are many others who have appeared to have seen a full life cycle in this short time period. From all the love on the street which made them touch dizzy heights of valuations during covid and then a realization that street is paying too much for them. It is about the diagnostic sector. Now when looking at the sector a distinction needs to be made as far as what street is doing
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