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With an impressive market cap of $221.3 billion, Thermo Fisher Scientific Inc. (TMO) is a leading scientific instrument maker based in Massachusetts. It also offers life sciences solutions, analytical instruments, specialty diagnostics, laboratory products, and biopharma services worldwide, setting itself apart from its rivals like Bio-Rad Laboratories, Inc. (BIO).
Companies worth $200 billion or more are generally described as “mega-cap stocks,” and Therma Fisher Scientific fits right into that category. Its market cap exceeds this threshold, reflecting its substantial size, stability, and influence in the medical healthcare sector. Thermo Fisher Scientific has a strong presence across diversified life sciences sectors and is backed by innovative R&D, efficient PPI systems, and significant economies of scale. As a result, the instrument giant has established itself as a dominant player in the market.
Despite its strengths, Thermo Fisher Scientific has hit rough waters. TMO stock is currently down 4% from its 52-week high of $603.82, achieved on March 8. Moreover, shares of TMO are down 2% over the past three months, lagging behind the Dow Jones Industrial Average Index’s ($DOWI) marginal gains over the same time frame.
Longer term, TMO is up 9.2% on a YTD basis, and the stock has soared 12.3% over the past 52 weeks. By contrast, the DOWI is up 3.2% in 2024 and 15.8% over the past year.
Despite the weak price performance, TMO has been trading above its 200-day moving average since late December and its 50-day moving average since mid-May.
Thermo Fisher Scientific's recent underperformance compared to the broader market could be due to several factors. The company operates in a highly competitive market, with established players and emerging companies posing a threat to its market share and pricing power. Additionally, global economic conditions and regulatory changes continue to impact the company's operations and profitability.
However, TMO stock rose on April 24, following the company's Q1 earnings results, which surpassed Wall Street's bottom-line projections. Thermo Fisher Scientific also raised its annual profit forecast.
Thermo Fisher Scientific has been outshining its top rival, Bio-Rad Laboratories, which has dropped 22.8% over the past 52 weeks and 10.9% on a YTD basis.
Although TMO's price performance has not been particularly impressive, analysts are optimistic about the stock's prospects. The stock has a consensus rating of “Strong Buy” from 19 analysts covering it, and the mean price target of $627.39 is a premium of 8.2% to current levels.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
