15 Best Large-Cap Value Stocks to Buy as the Recession Hits

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

Number of Hedge Fund Holders: 100

Forward P/E as of April 15: ~18.9x

Thermo Fisher Scientific Inc. (NYSE:TMO) is engaged in providing life sciences solutions, analytical instruments, specialty diagnostics, laboratory products, and biopharma services. Leerink Partners analyst Puneet Souda maintained the bullish stance on the company’s stock, providing a “Buy” rating. The analyst’s rating stems from a combination of factors surrounding Thermo Fisher Scientific Inc. (NYSE:TMO)’s strategic acquisition of Solventum’s Purification and Filtration business. The analyst opines that the acquisition is expected to enhance Thermo Fisher Scientific Inc. (NYSE:TMO)’s position in the bioprocessing sector, mainly in filtration.

Solventum’s Purification and Filtration business, as part of Thermo Fisher Scientific Inc. (NYSE: TMO), is anticipated to result in mid-to-high single-digit organic growth, and the application of the PPI Business System will allow robust margin expansion and healthy synergy realization. Elsewhere, Michael Ryskin from Bank of America Securities reiterated a “Buy” rating on Thermo Fisher Scientific Inc. (NYSE:TMO)’s stock with a price objective of $680.00. Notably, Solventum’s Purification and Filtration business is highly complementary to Thermo Fisher Scientific Inc. (NYSE:TMO)’s bioproduction business.

Polen Capital, an investment management company, released its Q4 2024 investor letter. Here is what the fund said:

“Thermo Fisher Scientific Inc. (NYSE:TMO) appears to continue to move past COVID-related headwinds that hampered growth in recent years. While the backdrop around big pharma budget cuts and a weaker biotech funding environment have weighed on the stock over the past year, Q4 underperformance seems more related to concerns over increased regulatory scrutiny under the new administration, given RFK Jr.’s appointment as the Trump administration’s head of U.S. Health and Human Services, and his vocal pronouncements against pharmaceutical industry drug pricing. In tough times, pharma and biotech companies lean on suppliers that can deliver the best value. We believe Thermo has a vast offering of products and services bundled at prices that competitors have a hard time matching, allowing them to take significant market share. We maintain our long-term conviction in Thermo as among the most durable compounders in the world, with the ability to drive consistent growth through good and bad macro environments.”