10 Best Life Sciences Stocks to Buy According to Hedge Funds

Page 10 of 10

1. Thermo Fisher Scientific (NYSE:TMO)

Number of Hedge Fund Holders: 121

Thermo Fisher Scientific (NYSE:TMO) is one of the 10 best life sciences stocks to buy according to hedge funds.

On January 30, Daniel Arias of Stifel Nicolaus maintained a Buy rating on Thermo Fisher Scientific (NYSE:TMO), with a $700 price target. The analyst reflected on the company’s strong finish to 2025, highlighting that Thermo Fisher Scientific (NYSE:TMO) was among the few sector names that did not pre-announce results before delivering a solid Q4 beat.

The company reported revenue growth of 3.91% over the past twelve months, with total revenue reaching $44.56 billion. Management shared guidance of roughly 3–6% organic growth in 2026, initially leaning towards the lower end of the range, indicating a cautious but stable outlook.

On January 30, Catherine Schulte from Baird increased the price target on Thermo Fisher Scientific (NYSE:TMO) from $645 to $653, maintaining her Outperform rating on the shares. Baird revised its model following the fourth-quarter announcement and continues to view the stock as a top investment idea.

Thermo Fisher Scientific (NYSE:TMO) facilitates research and diagnostics through high-end life sciences solutions, analytical instruments, specialty diagnostics, and laboratory products. The company also offers software, consumables, pharma, and instrument services to various research and industrial markets. It covers several segments such as academics, biotechnology, government, pharmaceuticals, and others.

While we acknowledge the potential of TMO as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than TMO and that has 100x upside potential, check out our report about this cheapest AI stock.

READ NEXT: 15 Most Promising Mid-Cap Healthcare Stocks Under $50 and 11 Most Promising Small-Cap Industrial Stocks Under $50.

Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.

Page 10 of 10