10 Innovative Healthcare Stocks to Watch in 2025

3. Thermo Fisher Scientific Inc. (NYSE:TMO)

Number of Hedge Fund Holders: 100

Thermo Fisher Scientific Inc. (NYSE:TMO) provides analytical instruments, reagents, equipment, software, and other services for analysis, research, diagnostics, and discovery. Analytical Instruments, Life Sciences Solutions, Laboratory Products and Services, and Specialty Diagnostics are its four business divisions.

Thermo Fisher Scientific Inc. (NYSE:TMO) is growing steadily, and in fiscal Q4 2024, it recorded $11.4 billion in revenue, which is a 5% increase from the previous year. Given that it produced more than $7.3 billion in free cash flow in fiscal 2024, its solid cash position further enhances its reputation. After growing its dividends for eight years in a row, the business also has a high dividend yield. Its potential to provide value to shareholders was demonstrated by the 250% outperformance of the sector median over two years.

Thermo Fisher Scientific Inc. (NYSE:TMO) has a competitive market position because of its long-standing client connections, high switching costs, and leadership in the life sciences, positioning itself among the best healthcare stocks. Its tools and supplies are particularly helpful in the development of new drugs. In the upcoming years, it’s management anticipates high-single-digit revenue growth, and the company anticipates continuing its steady expansion.

Because of its recent strategic acquisition of SOLV’s Purification and Filtration business, which was valued at $4.1 billion, analysts are optimistic about the stock. According to its long-term growth strategy, the acquisition is expected to improve Thermo Fisher Scientific Inc. (NYSE:TMO)’s reputation in the bioprocessing industry, particularly infiltration. Puneet Souda, an analyst at Leerink Partners, gave the business a Buy recommendation on February 27 and has remained bullish about it. Due to several circumstances surrounding its purchase of SOLV’s Purification and Filtration division, he has assigned the stock this rating. The analyst predicts that the deal will become accretive over time, with a good return on invested capital by the fifth year.