Thermo Fisher Scientific (TMO) Fell as Expectations for Demand Recovery in 2025 Continue to Moderate

Parnassus Investments, an investment management company, released the “Parnassus Growth Equity Fund” fourth quarter 2024 investor letter. A copy of the letter can be downloaded here. In the fourth quarter, the Fund (Investor Shares) returned 4.85% (net of fees) underperforming the Russell 1000 Growth Index’s 7.07% gain. For the year, the fund returned 26.85% compared to Russell 1000 Growth’s 33.36% return. In addition, please check the fund’s top five holdings to know its best picks in 2024.

In its fourth quarter 2024 investor letter, Parnassus Growth Equity Fund emphasized stocks such as Thermo Fisher Scientific Inc. (NYSE:TMO). Thermo Fisher Scientific Inc. (NYSE:TMO) offers life sciences solutions, analytical instruments, specialty diagnostics, and laboratory products and biopharma services. The one-month return of Thermo Fisher Scientific Inc. (NYSE:TMO) was -3.61%, and its shares lost 11.25% of their value over the last 52 weeks. On March 19, 2025, Thermo Fisher Scientific Inc. (NYSE:TMO) stock closed at $518.41 per share with a market capitalization of $195.58 billion.

Parnassus Growth Equity Fund stated the following regarding Thermo Fisher Scientific Inc. (NYSE:TMO) in its Q4 2024 investor letter:

“Thermo Fisher Scientific Inc. (NYSE:TMO), a manufacturer of lab equipment and analytical tools, reported in-line quarterly numbers. However, expectations for a demand recovery in 2025 continue to moderate, particularly given uncertainty regarding the new administration.”

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A workstation in a research lab stocked with laboratory products and services.

Thermo Fisher Scientific Inc. (NYSE:TMO) is in 26th position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 100 hedge fund portfolios held Thermo Fisher Scientific Inc. (NYSE:TMO) at the end of the fourth quarter which was 98 in the previous quarter. In Q4 2024, Thermo Fisher Scientific Inc.’s (NYSE:TMO) revenue grew 5% year-over-year to $11.4 billion. While we acknowledge the potential of Thermo Fisher Scientific Inc. (NYSE:TMO) as an investment, 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 as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

In another article, we discussed Thermo Fisher Scientific Inc. (NYSE:TMO) and shared the list of best strong stocks to buy. In addition, please check out our hedge fund investor letters Q4 2024 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.