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Valued at a market cap of $200 billion, Thermo Fisher Scientific Inc. (TMO) is a Massachusetts-based powerhouse in scientific instrumentation. The company also delivers a broad spectrum of life sciences solutions, analytical instruments, specialty diagnostics, laboratory products, and biopharma services worldwide.
Companies worth $200 billion or more are generally described as “large-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 devices sector.
The company also benefits from economies of scale, extensive distribution, and a strong brand reputation. Its commitment to innovation and R&D drives advancements in precision medicine, gene therapy, and automation, while its strategic acquisitions further expand capabilities. Additionally, TMO's exposure to essential industries like healthcare and biotech ensures resilient demand and recurring revenue, reinforcing its dominance in the scientific and life sciences sectors.
Thermo Fisher Scientific has encountered headwinds despite its strengths. TMO stock has fallen 15.8% from its 52-week high of $627.88, reached on Sept. 10. However, its shares have surged 1.4% over the past three months, outperforming the S&P 500 Index’s ($SPX) marginal drop over the same time frame.
Over the past six months, TMO shares have dropped 13.7% and are down 7.5% over the past year, while SPX surged 6.53.2% over six months and 17.5% over the past year.
Adding to the pressure, TMO has been trading below its 50-day and 200-day moving averages since early February, reinforcing a bearish trend.
Despite the grim price performance over the past year, TMO shares rose over 6% on Jan. 30 after reporting its Q4 results. Strong demand across all segments, particularly in laboratory products and biopharma services, drove an 8% year-over-year increase in adjusted EPS to $6.10, surpassing the projected $5.94. Revenue rose 5% to $11.4 billion, exceeding analysts' estimates of $11.28 billion, with notable strength in the analytical instruments segment.
While biotech firms have scaled back spending on contract drug manufacturing in recent years, recent interest rate cuts could ease borrowing costs and improve their funding environment. The medical device manufacturer projected its 2025 adjusted earnings per share between $23.10 and $23.50, slightly surpassing analysts' consensus estimate of $23.10.
Thermo Fisher Scientific has outpaced its top rival, Bio-Rad Laboratories, Inc. (BIO), which has dipped 19.7% over the past 52 weeks and 19.3% over the past six months.
While TMO’s stock performance has been lackluster, analysts remain highly optimistic about its future. The stock has a consensus rating of “Strong Buy” from 25 analysts covering it, and the mean price target of $661.36 represents a premium of 25% to TMO’s current price 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.
