1. Thermo-Fisher Scientific Inc. (NYSE:TMO)
Number of Hedge Fund Holders: 110
Thermo Fisher Scientific Inc. (NYSE:TMO) is a major supplier of lab equipment, diagnostics, and biopharma services across various industries like research, healthcare, and pharmaceuticals. Its offerings include instruments, consumables, and services used in drug discovery, disease diagnosis, and clinical research.
The company’s Q1 2024 results showed that revenue reached $10.34 billion, while adjusted EPS rose 2% to $5.11. The company has revised its revenue expectations to between $42.3 billion and $43.3 billion, up from the previous range of $42.1 billion to $43.3 billion. Similarly, adjusted EPS guidance has been increased to a range of $21.14 to $22.02, compared to the prior expectation of $20.95 to $22, reflecting strong operational performance this year.
With higher-than-expected EPS in Q1 2024 and increased revenue and EPS guidance, the company has attracted a consensus rating of “Strong Buy” and an average price target of $630.67, indicating an 11.94% upside potential.
Here’s what Generation Investment Management said about Thermo Fisher Scientific Inc. (NYSE:TMO) in its Q4 2023 investor letter:
“In each quarterly letter we share examples from the portfolio that bring our investment process to life. This quarter we focus on Thermo Fisher Scientific Inc. (NYSE:TMO), a provider of healthcare products.
In recent years advances have accelerated. The large-scale use of mRNA vaccines during the COVID pandemic – the first major application of these vaccines – is just one example. Similar advances in drug development have allowed medicines to be developed for hard-to-treat diseases like Alzheimer’s, as well as to treat and perhaps cure diseases that previously eluded treatment.
To push innovation forward, researchers need tools to ask the right questions, run experiments to test hypotheses and in turn draw insights. These tools encompass high-specification instruments, high-purity reagents, powerful software and a variety of specialised services. An ecosystem has developed of companies that specialise in providing these tools. We often think of them as providing the ‘picks-and-shovels’ to researchers who are mining for the gold once obscured by nature…” (Click here to read the full text)
While we acknowledge the potential of Thermo Fisher Scientific Inc. (NYSE:TMO) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than AVB but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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