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Thermo Fisher Scientific Inc. (TMO), headquartered in Waltham, Massachusetts, is a global leader in providing innovative laboratory equipment, life sciences solutions, and analytical instruments. With a market cap of $231.48 billion, Thermo Fisher plays a crucial role in advancing scientific research and healthcare. Competing with other prominent players in the life sciences and diagnostics sectors, one of Thermo Fisher's rivals is Danaher Corporation (DHR), known for its diverse range of scientific and diagnostic products.
Companies valued at $200 billion or more are typically classified as "mega-cap stocks," and Thermo Fisher Scientific rightly belongs to this category as a key player in the life sciences industry. As a leader in providing laboratory equipment, life sciences solutions, and analytical instruments, Thermo Fisher has established a commanding market presence fueled by its extensive product portfolio and commitment to innovation.
TMO shares are trading 1.7% below their 52-week high of $622.30, which they hit on Aug. 1. TMO has seen a 7.4% gain over the last three months compared to the 8.2% returns seen in the Vanguard Health Care Index Fund ETF (VHT) during the same period.
In the longer term, TMO is up 15.3% on a YTD basis, and the shares have gained 9.8% over the past 52 weeks. The VHT has gained 14.3% in 2024 and 16.8% over the past year.
However, TMO has been trading above its 50-day moving average since late July and its 200-day moving average since mid-November 2023.
Thermo Fisher Scientific has faced challenges such as intense competition, pricing pressures, and economic and regulatory changes, leading to underperformance compared to the broader market. However, the stock saw a 4.1% surge on Jul. 24 following a strong Q2 earnings report that beat revenue and profit expectations. Also, an upward revision of its full-year revenue and adjusted EPS guidance positively impacted investor sentiment.
Highlighting the contrast in performance, rival DHR has underperformed TMO, with a 14.3% gain on a YTD basis.
Despite TMO's recent underperformance compared to its sector, analysts are optimistic about its prospects. The stock has a consensus rating of "Strong Buy" from 20 analysts in coverage. The mean price target is $632.58, reflecting a 3.4% premium over current levels.
On the date of publication, Rashmi Kumari 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.
