Since last November, shares have rebounded. TMO reported a strong quarter today: huge revenue beat, better than organic growth, solid earnings beat and positive full-year guidance.
He recommends it, but has had a rough year. It did good business during Covid, mostly in Covid testing. But this created tough comparisons. Last week, they reported a strong quarter and boosted their full-year forecast. But shares have barely risen. That's crazy. It's a steal here.
It may be safe to circle back to "Covid plays" like this. TMO is the arms dealer for life sciences and pharma. They made a lot of money selling Covid tests and equipment to companies developing vaccines, but then we went into post-Covid mode. Shares plunged from last year's $672 to $588 today. However, the stock has rallied 90 points in the past 1.5 months. Last Thursday, TMO reported an excellent beat, up 20% from mid-June lows. It has a lot of room to run. It's a steady-eddy name.
Has owned company for 5 years. Is a good company to own within sector (way ahead of competition).
Stock has fallen recently which is presenting good buying opportunity (25x P/E ratio).
Dividend growing nicely with strong M&A activity.
Buy shares now and if the price falls, buy more.
Large, diversified. Specific lab and diagnostic equipment. Covid demand may have caused stock to gap up. Not immune to market rotation away from growth. Likes leadership, executing well. Multiple has compressed. Comfortable holding.
He prefers JNJ, CVS, and ABT. If you own it, don't sell. Otherwise, don't buy now. Well run, but growth profile has lagged. Valuation got hit. Wait for a pullback.
His fair market value $393, 33% overvalued. If this breaks down at $515, it will slide. The company itself is fine, but it's a valuation issue--it's expensive.
Allan Tong’s Discover PicksTMO, by the ways, has easily beat its last four quarters. Its EPS of $19.47 beats Intuitive Surgical ($4.66) and Danaher ($8.49). Cash flow is strong though its 19.72% profit margin lags Intuitive's 30.26% and Danaher's 21.55%. Forget the 0.22% dividend, though this sector is not for income investors. The street has seven buys and one hold on TMO at a $689.13 price target or 13% higher. Consider this a partial buy. Read 3 Promising Healthcare Stocks for our full analysis.
(A Top Pick Jun 10/21, Up 29%) It trades at a fair value and is a great long term buy. It makes highly sensitive measurement devices for research development in several fields. Could be some headwinds because of the Covid testing equipment part. Has high recurring revenue, is acquisitive and a compounder of capital. Growing quickly in China and also around the world.
(A Top Pick Mar 30/21, Up 21%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with TMO has triggered its stop at $550. To remain disciplined, we recommend covering the position at this time. This results in a net investment gain of 24% when considering our previous buy recommendation to cover half the position.
(A Top Pick Feb 10/21, Up 23%) Believes company has unique value proposition of laboratory testing + product manufacturing.
Company has been very active in making acquisitions.
No material debt as a result of large free cash flow.
Revenue growth will slow as Covid-19 reduces.
It delivered a strong quarter, and yet Wells Fargo slashed TMO's price target. No, the company itself didn't do anything, but the slash may have discouraged stock buyers.
Thermo Fisher Scientific is a American stock, trading under the symbol TMO (previously TMO-N on Stockchase) on the New York Stock Exchange (TMO). It is usually referred to as NYSE:TMO or TMO
Does not own shares, but keeps eye on company.
Well run company, but valuation too high.
Believes company has strong long term prospects.