Morgan Stanley’s Highest Conviction Stocks: Top 20 Stocks To Buy

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

Share Price Upside: 8%

Number of Hedge Fund Investors In Q2 2024: 108

Thermo Fisher Scientific Inc. (NYSE:TMO) is one of the biggest medical raw materials and equipment providers for the diagnostics and research industry. Since the start of 2022, its shares have lost 22%, which has been unsurprising given the impact of the coronavirus pandemic on the healthcare industry. Diagnostic services providers such as Thermo Fisher Scientific Inc. (NYSE:TMO) boomed during the pandemic as their products were widely demanded to help diagnose the virus. After the virus cases dropped, naturally their revenues also dropped and this was reflected in the share price. However, Thermo Fisher Scientific Inc. (NYSE:TMO) has moved forward, and as of 2023, 60% of its revenue came from the pharma industry. Its stature in the industry generates trust, which is key for healthcare companies, and during the pandemic, Thermo Fisher Scientific Inc. (NYSE:TMO) was Moderna’s partner for its COVID 19 vaccine. Sizeable resources, such as $8 billion in cash also mean that the firm can continuously innovate, and these days, the firm is focusing on the proteonomics market by announcing new products.

Thermo Fisher Scientific Inc. (NYSE:TMO)’s management shared details for these products during its 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.”