10 Best Cancer Stocks to Buy According to Hedge Funds

3. Thermo Fisher Scientific Inc. (NYSE:TMO)

Number of Hedge Fund Holders: 98

Thermo Fisher Scientific Inc. (NYSE:TMO) provides analytical instruments, reagents, equipment, software, and other services for analysis, research, diagnostics, and discovery. It operates through the Analytical Instruments, Life Sciences Solutions, Laboratory Products and Services, and Specialty Diagnostics segments. It offers multiple solutions to diagnose and predict cancer.

The company is on a solid growth trajectory. It reported $11.4 billion in revenue in fiscal Q4 2024, reflecting a 5% year-over-year growth. Thermo Fisher Scientific Inc. (NYSE:TMO) holds a competitive market position due to its leadership in life sciences, long-term customer relationships, and high switching expenses. Its consumables and equipment are especially useful in drug development.

It also has a strong dividend yield, with seven consecutive years of growth. The company outperformed the sector median of two years by 250%, reflecting its ability to return value to its shareholders. Thermo Fisher Scientific Inc. (NYSE:TMO) expects to continue its consistent growth, and management forecasts high-single-digit revenue growth in the coming years. The company’s strong cash position further bolsters its standing, as it generated over $7.3 billion in free cash flow in fiscal 2024.