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NYSE:TMO

Thermo Fisher Scientific (TMO)

462.94
-1.67 (0.36%)
as of Jun 18, 2026, 11:20:32 pm Market Open.
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Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

TOP PICK
Stockchase Research Editor: Michael O'Reilly TMO is a $173 billion market-cap company that provides scientific instruments and consumables to companies involved in COVID-19 testing, treatment and vaccine production. Management expects another 50% increase in EPS this year, following last year's 74% boost. The company grew its cash position by over $7.5 billion company and it plans to use this to further invest in new technologies. It pays a small dividend, backed by a 5% payout ratio. We would buy this with a stop loss at $390, looking to achieve $560 --upside potential over 23%. Yield 0.20% (Analysts’ price target is $559.16)
BUY

A cousin of Danaher. In the life sciences but more lab oriented. Just bought a company that do PCR testing for instant Covid testing. Trades a little cheaper than Danaher. A well-managed company.

BUY ON WEAKNESS

It's coming back nicely, and it never comes down from its 52-week high. Some feel that with the pandemic winding down, them TMO's machine won't be making much money, but this stock isn't done. (Neither is Zoom Video.) During this pullback, pounce.

BUY
A favourite medical device stock; their products are established in hospitals and medical labs. A big holding of his. Though it's been lagging in the last 4 months. He likes the current stock price and sees 20% upside this year in this stock. They do M&A well but they also grow organically. Maybe the market is waiting for them to do a big purchase. TMO does well year after year, and you can buy and hold this for a long time.
BUY

TMO vs. VTRS VTRS has lower growth assets with fairly consistent cashflows. TMO is into tools and diagnostics. 75% of TMO's business is consumables. It's benefitting significantly from Covid, and this should continue. They blew away estimates, and so you pay a bit more for it.

COMMENT

TMO vs. WAT vs. DHR WAT not performing as well as Thermo Fisher or Danaher. Cash from operations has been flat in the last 4 years, whereas the other two have doubled, which is reflected in the stock price. Market share, operating margins, and pricing power impact the business model. Compare these when assessing competitors in an industry.

TOP PICK
Provides end-to-end service. Contact tracing for Covid. Can manufacture drugs. Great performer over the last 5-10 years. A main holding in all his portfolios. Yield is 0.18%. (Analysts’ price target is $557.05)
BUY
Today they delivered a great quarter, but the stock rose only 1%. In November, it also delivered good results, and yet the stock had a rough two months. It's nuts. TMO is making a fortune from efforts to fight Covid. They're in the diagnostics business and supply drug companies with equipment to develop the drugs/vaccines that are working. The stock has rallied since the start of this year. Today, TMO reported 51% orgnanic growth driven by super sales and earnings, and great R&D for the future. Managers bullish guidance. Stock is rising to new highs.
BUY
PCR - https://en.wikipedia.org/wiki/Polymerase_chain_reaction A way to play the vaccine trade? Yes. This is far more than a PCR company. They are a premier medical device company run by a fine CEO.
PAST TOP PICK
(A Top Pick Aug 20/19, Up 56%) Great long-term grower. Serves many different industries. Tailwind with Covid and testing equipment. Fantastically well run. Have to close your eyes and just buy it. Could buy half now, more later. Don't have to worry about it fundamentally longer term.
TOP PICK
They have gene sequencing technologies and others that run protein blots to help with vaccine development. They are in the diagnostic space as well. Revenues have increased with the pandemic as demand for the products are so high. Yield 0.22% (Analysts’ price target is $432.53)
DON'T BUY
It's done very well, despite a hiccup in Q3 earnings. TMO is in the news because it makes lab equipment, and trades at 35x earnings. It has a steady growth rate, but they need a strong catalyst to grow at that high multiple.
DON'T BUY
A diversified lab equipment and diagnostics company. They also have an industrial component to their business. They are not part of their fund. The earnings multiple for the sector expanded by 20x. Basically, you are paying more for the same company. That's okay for a growth company but you have to execute perfectly. It is one of the safer choices, but he thinks it's a little too rich now.
BUY ON WEAKNESS
As a medium-term hold. He expects a general pullback in the next couple weeks. TMO will likely fall back to $300, which is the time to buy. If you already own, take some profits. He likes TMO.
BUY ON WEAKNESS
He loves this company -- up 300% over five years. They have a lot of recurring revenues in health care devices. It trades at 25 time earnings, so he is thinking it is fair valued. He would like to buy on a market correction.
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