Markets

Insider Trading

Hedge Funds

Retirement

Opinion

Is Thermo Fisher Scientific Inc. (NYSE:TMO) One Of The Top Stocks Among All Sectors To Buy Now?

We recently compiled a list of the 10 Best Stocks In Each Sector In 2024. In this article, we are going to take a look at where Thermo Fisher Scientific Inc. (NYSE:TMO) stands against the other top stocks in each sector.

With 2024’s close approaching fast, the stock market has touched new records that few would have thought were possible when the Federal Reserve started its interest rate hiking cycle in March 2022. Most of the stock market’s gains are due to artificial intelligence making a splash in November 2022, and since then, investors have had a chance to bask in meteoric returns as they waited for financial conditions to ease.

For instance, consider the stock performance of the world’s leading AI GPU designer. From the start of 2021 to the end of 2022, when inflation had peaked in the US, its shares had bled 53%. Back then, the semiconductor industry was facing a historic glut as chip companies had shipped excessive inventory into the channel after witnessing booming demand during the pandemic era. However, since the start of November 2022, the stock has gained 800%+, simply due to the fact that its GPUs are the prized commodity for training and using AI software.

On the flip side, consider a warehouse and logistics real estate stock with a market value of $117 billion and which ranked 11th on our list of the 12 Best Forever Stocks To Buy Now. During the time that the GPU designer’s shares gained 800%+, its stock has posted a mere 17% in returns through share price appreciation. This bifurcation sits at the heart of the stock market right now, where while stocks exposed to AI, such as the 4th top stock out of the 12 that Jim Cramer believes investors should watch closely, are up by 61% year to date.

Apart from chip designers, other stocks have also been caught up in the AI wave. One of the biggest sectors that has seen these tailwinds is utilities. Within utilities, firms that rely on carbon free sources to generate electricity are seeing particular interest. One top stock that has performed well this year ranked 2nd on our list of 10 Best Infrastructure Stocks To Buy Now. A nuclear energy firm that generates 90% of its 32GW energy capacity through nuclear, the stock is up 120% year to date. In fact, this stock jumped by a hefty 26% between September 18th to September 23rd, after Microsoft announced a 20 year deal with it to use a nuclear plant at Three Mile Island to power up its AI data centers. The shares were further helped when the biggest banks in the world backed a COP28 goal to triple global nuclear power generation capacity by 2050.

Focusing on the broader clean energy sector which has been quite distressed in the era of high rates with the S&P’s clean energy index down by 3.19% over the past year, analysts continue to be bullish about the sector’s future. Estimates from the International Energy Agency (IEA) suggest that global clean energy demand is slated to grow by 3.4% annually until 2026. Within the US, the Energy Information Agency (EIA) expects that renewable energy deployment will grow by 17% in the US this year to potentially account for 25% of American energy production by touching 42GW. Government spending has played a key role in this optimism, as these initiatives have led to private companies announcing $82 billion in investments for clean energy manufacturing and infrastructure.

While clean energy has lagged amidst investor worries of high rates sapping investments, other sectors have prospered. One such sector is the telecommunications sector. As we live in the information age, humanity’s data consumption has touched levels no one would have thought were possible when the internet was growing in popularity during the 1990s. Estimates show that while global data consumption already sat at a remarkable 3.4 million petabytes (PB – 1 PB = 1,048,576 GB), it is expected to grow to 9.7 million PB by 2027. Simultaneously, telecommunications companies are expected to invest a whopping $342 billion in network upgrades by 2027, while the number of Internet of Things (IoT) gadgets is expected to surge to 25.1 billion by the same year. Telecommunications stocks have performed well over the past twelve months as well since the S&P’s telecommunications index is up by 40.48%.

Mid September also saw a status quo change on Wall Street as the Federal Reserve cut interest rates by 50 basis points. While this is great for industrial, real estate, and clean energy stocks, it’s also beneficial for financial services firms and banks in particular. While banks have the opportunity to earn more money through interest from loans generated when rates are high, their deposit costs also increase to dent the overall net interest income. As a result, since the Fed’s rate cut announcement, the S&P’s bank stock index has gained 5.8%. As a whole, the financial services industry is expected to grow at a compounded annual growth rate (CAGR) of 7.7%, or from $31 trillion in 2023 to $33.5 trillion by the end of this year.

Crucially, lower rates also mean that alternative securities become more attractive to investors. When it comes to stocks, dividend stocks are particularly favored as their yield becomes lucrative compared to low interest rates. The Dividend Aristocrat Index is up by 2.3% since the rate cut. Investors, it seems, are attracted to dividends again, which is unsurprising considering that the S&P’s dividend stocks paid out $153 billion in dividends in Q2 2024 to mark a 7% annual and 1.2% sequential growth.

A Nuclear power plant with all its safety & security protocols in place.

Our Methodology

To make our list of the best stocks to buy in each sector, we used our coverage of the best stocks in infrastructure, materials, clean energy, telecommunications, financial services, dividends, artificial intelligence, real estate, consumer defensive, and healthcare to pick out the top stocks. The stocks are ranked by the number of hedge funds that bought the shares during Q2 2024.

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points. (see more details here).

Thermo Fisher Scientific Inc. (NYSE:TMO)

Number of Hedge Fund Holders in Q2 2024: 108

Thermo Fisher Scientific Inc. (NYSE:TMO) is a sizeable company in the global pharmaceutical raw materials and lab equipment industry. Its scale lends it indispensable advantages in the life sciences industry. These are primarily trust and deep industry partnerships that enable Thermo Fisher Scientific Inc. (NYSE:TMO) to remain at the forefront of emerging trends. This was clear during the pandemic era, as it was Moderna’s partner for the coronavirus vaccine. However, as of 2023, 60% of Thermo Fisher Scientific Inc. (NYSE:TMO)’s revenue was from the pharmaceutical industry. Pharma performs well when rates are low as companies can invest heavily in future drugs. Consequently, the firm’s shares jumped by 1.6% after the Fed’s rate cut in September. Yet, they ended up losing their gains after the firm’s Investor Day. This was because Thermo Fisher Scientific Inc. (NYSE:TMO)’s management did not share optimistic updates for its China business and refrained from providing an outlook for 2025. Therefore, moving forward, these elements should be the two keys when evaluating Thermo Fisher Scientific Inc. (NYSE:TMO)’s shares.

One segment where Thermo Fisher Scientific Inc. (NYSE:TMO)’s management has focused quite a bit is the proteomics industry. Here is what they shared during the Q2 2024 earnings call:

“I’ll begin with the new technologies we launched at the American Society for Mass Spectrometry Conference, further strengthening our industry leading position in analytical instruments. At the conference, we introduced the Thermo Scientific Stellar Mass Spectrometer, which extends our leadership in proteomics. The Thermo Scientific Stellar is used to validate biomarker candidates. It offers unprecedented analytical capabilities for targeted quantitation, enabling the insights needed by researchers to advance their work.

It’s a perfect complement to our groundbreaking Thermo Scientific Orbitrap Astral, used for protein discovery that we launched last year. It was incredibly exciting to hear the customer testimonials sharing the power of the Orbitrap Astral. To-date, we’ve had more than 40 publications that incorporated the impact of this breakthrough, and we’re really just getting started. Also at ASMS, we launched three new build-for-purpose editions of the Thermo Scientific Orbitrap Ascend Tribrid Mass Spectrometer tailored to specific applications for MultiOmics, Structural Biology and BioPharma. These instruments continue to elevate our industry-leading Thermo Scientific Orbitrap portfolio by offering enhanced speed and sensitivity to detect and characterize the most difficult protein samples, including complex biologics.”

Overall TMO ranks 3rd on our list of the best stocks to buy in each sector. While we acknowledge the potential of TMO as an investment, our conviction lies in the belief that some 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.

READ NEXT: $30 Trillion Opportunity: 15 Best Humanoid Robot Stocks to Buy According to Morgan Stanley and Jim Cramer Says NVIDIA ‘Has Become A Wasteland’.

Disclosure: None. All investment decisions should be made after consulting a qualified professional.  This article is originally published at Insider Monkey.

AI Fire Sale: Insider Monkey’s #1 AI Stock Pick Is On A Steep Discount

Artificial intelligence is the greatest investment opportunity of our lifetime. The time to invest in groundbreaking AI is now, and this stock is a steal!

The whispers are turning into roars.

Artificial intelligence isn’t science fiction anymore.

It’s the revolution reshaping every industry on the planet.

From driverless cars to medical breakthroughs, AI is on the cusp of a global explosion, and savvy investors stand to reap the rewards.

Here’s why this is the prime moment to jump on the AI bandwagon:

Exponential Growth on the Horizon: Forget linear growth – AI is poised for a hockey stick trajectory.

Imagine every sector, from healthcare to finance, infused with superhuman intelligence.

We’re talking disease prediction, hyper-personalized marketing, and automated logistics that streamline everything.

This isn’t a maybe – it’s an inevitability.

Early investors will be the ones positioned to ride the wave of this technological tsunami.

Ground Floor Opportunity: Remember the early days of the internet?

Those who saw the potential of tech giants back then are sitting pretty today.

AI is at a similar inflection point.

We’re not talking about established players – we’re talking about nimble startups with groundbreaking ideas and the potential to become the next Google or Amazon.

This is your chance to get in before the rockets take off!

Disruption is the New Name of the Game: Let’s face it, complacency breeds stagnation.

AI is the ultimate disruptor, and it’s shaking the foundations of traditional industries.

The companies that embrace AI will thrive, while the dinosaurs clinging to outdated methods will be left in the dust.

As an investor, you want to be on the side of the winners, and AI is the winning ticket.

The Talent Pool is Overflowing: The world’s brightest minds are flocking to AI.

From computer scientists to mathematicians, the next generation of innovators is pouring its energy into this field.

This influx of talent guarantees a constant stream of groundbreaking ideas and rapid advancements.

By investing in AI, you’re essentially backing the future.

The future is powered by artificial intelligence, and the time to invest is NOW.

Don’t be a spectator in this technological revolution.

Dive into the AI gold rush and watch your portfolio soar alongside the brightest minds of our generation.

This isn’t just about making money – it’s about being part of the future.

So, buckle up and get ready for the ride of your investment life!

Act Now and Unlock a Potential 10,000% Return: This AI Stock is a Diamond in the Rough (But Our Help is Key!)

The AI revolution is upon us, and savvy investors stand to make a fortune.

But with so many choices, how do you find the hidden gem – the company poised for explosive growth?

That’s where our expertise comes in.

We’ve got the answer, but there’s a twist…

Imagine an AI company so groundbreaking, so far ahead of the curve, that even if its stock price quadrupled today, it would still be considered ridiculously cheap.

That’s the potential you’re looking at. This isn’t just about a decent return – we’re talking about a 10,000% gain over the next decade!

Our research team has identified a hidden gem – an AI company with cutting-edge technology, massive potential, and a current stock price that screams opportunity.

This company boasts the most advanced technology in the AI sector, putting them leagues ahead of competitors.

It’s like having a race car on a go-kart track.

They have a strong possibility of cornering entire markets, becoming the undisputed leader in their field.

Here’s the catch (it’s a good one): To uncover this sleeping giant, you’ll need our exclusive intel.

We want to make sure none of our valued readers miss out on this groundbreaking opportunity!

That’s why we’re slashing the price of our Premium Readership Newsletter by a whopping 70%.

For a ridiculously low price of just $29, you can unlock a year’s worth of in-depth investment research and exclusive insights – that’s less than a single restaurant meal!

Here’s why this is a deal you can’t afford to pass up:

• Access to our Detailed Report on this Game-Changing AI Stock: Our in-depth report dives deep into our #1 AI stock’s groundbreaking technology and massive growth potential.

• 11 New Issues of Our Premium Readership Newsletter: You will also receive 11 new issues and at least one new stock pick per month from our monthly newsletter’s portfolio over the next 12 months. These stocks are handpicked by our research director, Dr. Inan Dogan.

• One free upcoming issue of our 70+ page Quarterly Newsletter: A value of $149

• Bonus Reports: Premium access to members-only fund manager video interviews

• Ad-Free Browsing: Enjoy a year of investment research free from distracting banner and pop-up ads, allowing you to focus on uncovering the next big opportunity.

• 30-Day Money-Back Guarantee:  If you’re not absolutely satisfied with our service, we’ll provide a full refund within 30 days, no questions asked.

 

Space is Limited! Only 1000 spots are available for this exclusive offer. Don’t let this chance slip away – subscribe to our Premium Readership Newsletter today and unlock the potential for a life-changing investment.

Here’s what to do next:

1. Head over to our website and subscribe to our Premium Readership Newsletter for just $29.

2. Enjoy a year of ad-free browsing, exclusive access to our in-depth report on the revolutionary AI company, and the upcoming issues of our Premium Readership Newsletter over the next 12 months.

3. Sit back, relax, and know that you’re backed by our ironclad 30-day money-back guarantee.

Don’t miss out on this incredible opportunity! Subscribe now and take control of your AI investment future!


No worries about auto-renewals! Our 30-Day Money-Back Guarantee applies whether you’re joining us for the first time or renewing your subscription a year later!

A New Dawn is Coming to U.S. Stocks

I work for one of the largest independent financial publishers in the world – representing over 1 million people in 148 countries.

We’re independently funding today’s broadcast to address something on the mind of every investor in America right now…

Should I put my money in Artificial Intelligence?

Here to answer that for us… and give away his No. 1 free AI recommendation… is 50-year Wall Street titan, Marc Chaikin.

Marc’s been a trader, stockbroker, and analyst. He was the head of the options department at a major brokerage firm and is a sought-after expert for CNBC, Fox Business, Barron’s, and Yahoo! Finance…

But what Marc’s most known for is his award-winning stock-rating system. Which determines whether a stock could shoot sky-high in the next three to six months… or come crashing down.

That’s why Marc’s work appears in every Bloomberg and Reuters terminal on the planet…

And is still used by hundreds of banks, hedge funds, and brokerages to track the billions of dollars flowing in and out of stocks each day.

He’s used this system to survive nine bear markets… create three new indices for the Nasdaq… and even predict the brutal bear market of 2022, 90 days in advance.

Click to continue reading…