Below are the three companies in the Life Sciences Tools & Services industry with the highest operating margin. A healthy operating margin is required for a company to pay for its fixed costs and generate cash.
Illumina (NASDAQ:ILMN) is highest with an operating margin of 23.8%. Illumina, Inc. develops, manufactures and markets integrated systems for the large scale analysis of genetic variation and biological function. The Company provides a comprehensive line of products and services that currently serve the sequencing, genotyping and gene expression markets for genomic research centers, pharmaceutical companies, academic institutions and biotechnology companies.
Illumina (NASDAQ:ILMN) is currently priced 5.9% above its average consensus analyst price target of $51.78. The stock should discover initial support at its 50-day moving average (MA) of $50.57 and subsequent support at its 200-day MA of $46.14.
MDS (NYSE:MDZ) is next with an operating margin of 23.7%.
Finishing up the top three is WuXi PharmaTech Cayman (NYSE:WX), with an operating margin of 17.0%.