1. Thermo Fisher Scientific Inc. (NYSE:TMO)
Number of Hedge Fund Holders: 110
Headquartered in Waltham, Massachusetts, Thermo Fisher Scientific Inc. (NYSE:TMO) is a leading American provider of analytical instruments, life sciences solutions, specialty diagnostics, and laboratory, pharmaceutical, and biotechnology services. The company was formed in 2006 through the merger of Thermo Electron and Fisher Scientific.
For the latest quarter, Thermo Fisher reported adjusted earnings per share of $5.11, surpassing analysts’ estimate of $4.71. Revenue also exceeded expectations, reaching $10.34 billion compared to the consensus estimate of $10.16 billion. Looking ahead, Thermo Fisher has raised its full-year 2024 guidance, now anticipating revenue between $42.3 billion and $43.3 billion and adjusted EPS ranging from $21.14 to $22.02. The midpoint of the adjusted EPS guidance is $21.58, slightly above the consensus of $21.53, while the midpoint of the revenue guidance, $42.8 billion, is slightly below the consensus estimate of $42.83 billion.
Deutsche Bank recently increased its price target for Thermo Fisher Scientific Inc. (NYSE:TMO) to $610 from the previous $600, maintaining a Buy rating on the stock. This adjustment reflects a positive outlook on the company’s bioprocessing segment, which has shown strong order growth and a rising book-to-bill ratio. However, the firm also highlighted potential downside risks, including a slowdown in demand for bioprocessing products, challenges in replacing revenue from COVID-19 related business, and possible business disruptions due to geopolitical instability or quarantine policies.
As of the end of the March quarter, 66 hedge funds reported owning stakes in Thermo Fisher Scientific Inc. (NYSE:TMO). The largest stakeholder during this period was Ken Fisher’s Fisher Asset Management, which holds a $1.45 billion stake in the company. The stock takes top place on our list of the best scientific instruments stocks to buy.
Polen Focus Growth Strategy stated the following regarding Thermo Fisher Scientific Inc. (NYSE:TMO) in its first quarter 2024 investor letter:
“We increased our positions in Thermo Fisher Scientific Inc. (NYSE:TMO), Visa, Zoetis, Nike, and Abbott Labs. Each of these companies is durable and available at attractive valuations, in our view, for the growth we see ahead. In fact, in the case of ThermoFisher, Nike, and Abbott Labs, we expect accelerating earnings growth in the back half of 2024 after more difficult earnings growth periods pass for each of these companies. ThermoFisher and Abbott will finally wind down most of their COVID-19 testing and vaccine-related efforts due to a lack of demand, so these should no longer be revenue growth headwinds.”
While we acknowledge the potential of scientific instruments stocks, 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 TMO but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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