10 Best Healthcare Stocks To Buy According to Hedge Funds

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

Number of Hedge Fund Holders: 108 

Thermo Fisher Scientific (NYSE:TMO) stands second among the best healthcare stocks to buy according to hedge funds. The American biotech company has seen a 14% stock rise in 2024 which was driven by its acquisition strategy. Its recent acquisition of Olink strengthens its leadership in protein research which accelerates discoveries and advances precision medicine.

Thermo Fisher Scientific Inc. (NYSE:TMO) reported $10.5 billion in revenue for the second quarter of 2024, a 1.3% decrease from the same period the previous year. Nonetheless, the sales came in at $23.4 million over experts’ projections. Analysts view the corporation as a leader because of its unwavering commitment to research.

Thermo Fisher Scientific’s balance sheet remains strong, with Q2 2024 operating cash flow rising to $1.96 billion from $1.54 billion last year. Free cash flow grew to $1.7 billion from $1.26 billion.

As of Q2 2024, 108 hedge fund holders from among those we tracked held stakes in the stock with Fisher Asset Management being the largest stakeholder from these with 2,570,972 shares worth $1,421,748,082. The stock holds a Strong Buy rating based on 16 Wall Street analysts. Over the past 3 months, 16 Wall Street analysts set an average 12-month price target of $646.81 for Thermo Fisher, with a high of $700.00 and a low of $600.00. This reflects a 5.40% increase from the current price of $613.69.