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Thermo Fisher Scientific Inc. (TMO), headquartered in Waltham, Massachusetts, offers life sciences solutions, analytical instruments, specialty diagnostics, laboratory products, and biopharma services. Valued at $205.8 billion by market cap, the company provides a portfolio of reagents, instruments, and consumables for research, drug development, and disease diagnosis, along with laboratory products and biopharma services under brands like Thermo Scientific, Applied Biosystems, Invitrogen, Fisher Scientific, Unity Lab Services, Patheon, and PPD.
Shares of this leading scientific research services and products provider have underperformed the broader market over the past year. TMO has declined 1.1% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 23.5%. In 2025, TMO stock is up 2.4%, compared to SPX’s 4% rise on a YTD basis.
Narrowing the focus, TMO’s underperformance is also apparent compared to Vanguard Health Care Index Fund ETF (VHT). The exchange-traded fund has gained about 3% over the past year. Moreover, the ETF’s 6.1% gains on a YTD basis outshine the stock’s returns over the same time frame.
TMO’s challenges stem from its core business struggling with sluggish revenue growth, rising expenses, and diminishing returns. Additionally, high R&D investments, pricing pressures from budget-conscious institutions, and volatility in research funding cycles have contributed further to its risks.
On Jan. 30, TMO shares closed up more than 6% after reporting its Q4 results. Its adjusted EPS of $6.10 exceeded Wall Street expectations of $5.93. The company’s revenue was $11.4 billion, beating Wall Street forecasts of $11.3 billion.
For fiscal 2025, ending in December, analysts expect TMO’s EPS to grow 6.5% to $23.28 on a diluted basis. The company’s earnings surprise history is impressive. It beat the consensus estimate in each of the last four quarters.
Among the 25 analysts covering TMO stock, the consensus is a “Strong Buy.” That’s based on 18 “Strong Buy” ratings, three “Moderate Buys,” and four “Holds.”
This configuration is more bullish than two months ago, with 17 analysts suggesting a “Strong Buy.”
On Feb. 10, Wells Fargo & Company (WFC) analyst Brandon Couillard maintained a “Buy” rating on TMO with a price target of $680, implying a potential upside of 27.7% from current levels.
The mean price target of $660.76 represents a 24.1% premium to TMO’s current price levels. The Street-high price target of $715 suggests an ambitious upside potential of 34.2%.
