Thermo Fisher Scientific, Inc. (TMO) saw growth slow over the past six months. Despite a bear market, the life sciences company still outperformed the S&P500 and rose by approximately 5% compared to the S&P’s loss of about 10% over the past year. Hedge funds sold the stock in the first quarter, but it was still added to the WhaleWisdom Whale 100 index on May 17, 2022.
Thermo Fisher provides medical equipment, analytical instruments, reagents and consumables, software, and services for research analysis, diagnostics, and clinical laboratories. Thermo Fisher formed when the companies Thermo Electron and Fisher Scientific merged in 2006 and has since acquired other businesses to expand its life sciences presence. The company comprises four business segments: Analytical Technologies, Specialty Diagnostics, Life Sciences Solutions, and Laboratory Products and Services. Thermo Fisher was vital in delivering medical treatments during the Coronavirus pandemic. The company supplies specialty diagnostic tools and equipment to pharmaceutical and other healthcare companies to aid in clinical research of the Coronavirus and vaccine and medical treatment manufacturing.
Hedge Funds Trim Portfolios
Thermo Fisher saw hedge funds and institutions decreasing holdings in their portfolio in the first quarter of 2022. The aggregate 13F shares held by hedge funds decreased to about 61.5 million from 61.9 million, a change of about 0.6%. Of the hedge funds, 28 created new positions, 133 added to an existing holding, 43 exited, and 179 reduced their stakes. Overall, institutions sold and decreased their aggregate holdings by about 1.3% to approximately 338.0 million from 342.4 million. The long-term 13F metrics between 2005 and 2022 demonstrate that Thermo Fisher’s investment potential maintains an upward trend.
Favorable Multi-year Estimates
Analysts expect to see earnings rise through 2023, with a year-over-year estimated increase bringing earnings to $24.50 per share by December 2023, up from $22.79 for 2022. Revenue forecasts are also encouraging, with revenue expected to increase to $44.5 billion by 2023, up from a predicted $42.5 billion by 2022.
Thermo Fisher’s earnings estimates for 2022 and 2023 are encouraging for investors. While growth may have recently slowed, healthcare spending continues to rise, and the life sciences giant is well-positioned to respond to emerging needs. The stock’s trends suggest a long-term opportunity for investors.