Health Care – Life Science & Diagnostic Tools: 2012 First

Tycho Peterson, who repeats on the first team, “does great primary work and offers in-depth industry pieces,” says one money manager. Another appreciates that the J.P. Morgan analyst, who reports on 29 companies, “doesn’t data-point clients to death, and realizes that stock picking is the client’s job — not his.” Peterson, 40, recommends “selective exposure” to the sector. “The challenge for companies in the current environment has been to accelerate earnings, cash generation and shareholder returns, despite a slowing top line,” he explains. His advice? Lean toward those with exposure to emerging markets rather than those dependent on Europe and the U.S. In December he dubbed Illumina, a San Diego–based sequencing-system manufacturer, his top pick for 2012; the stock shot up 38.1 percent year-to-date through August. Peterson upgraded Qiagen from neutral to overweight in January, at $14.16, on the strength of the Dutch assay-kit manufacturer’s growth prospects. By late August the stock had surged 25.3 percent, to $17.74, and led the sector by 11.5 percentage points.