3. Thermo Fisher Scientific Inc. (NYSE: TMO)
Number of Hedge Fund Holders: 79
Thermo Fisher Scientific Inc. (NYSE: TMO) ranks 3rd on the list of the 10 medical technology stocks to buy. The Massachusetts-based life sciences company offers instruments used in medical and biological research. The company also offers special diagnostic kits and laboratory products and services.
On July 16th, Benchmark analyst Robert Wasserman initiated coverage of Thermo Fisher Scientific Inc. (NYSE: TMO) with a Buy rating and $580 price target. The analyst is optimistic that Thermo Fisher Scientific Inc. (NYSE: TMO) is well-positioned to provide the next phase of biotechnology advancement with its cell and gene therapy discovery.
The company has a market cap of $205 billion. In the first quarter of 2021, Thermo Fisher Scientific Inc. (NYSE: TMO) had an EPS of $7.21, beating estimates by $0.56. The company’s revenue in the first quarter came in at $9.91 billion, an increase of 59% year over year. Shares of Thermo Fisher Scientific Inc. (NYSE: TMO) jumped 2.31% in the last five days after opening its 67,000-square foot cGMP plasmid DNA production facility in Carlsbad, California. On July 8th, the company declared a quarterly dividend of $0.26 per share, the same as the previous quarter. The dividend yield is 0.2%. The stock has returned 27% to investors over the past twelve months and shares have increased 8% in the last three months.
By the end of the first quarter of 2021, 79 hedge funds followed by Insider Monkey held stakes in Thermo Fisher Scientific Inc. (NYSE: TMO) with a total value of $6.25 billion, up from 89 hedge funds worth $5.47 billion the preceding quarter.
In its Q4 2020 investor letter, Baron Health Care Fund highlighted a few stocks and Thermo Fisher Scientific Inc. (NYSE: TMO) is one of them. Here is what the fund said:
“We added to Thermo Fisher Scientific Inc., the leading global life sciences tools provider. Thermo is a “picks and shovels” company that offers a broad array of products and services (such as instruments, reagents, consumables, and manufacturing, and other services) to pharmaceutical and biotechnology companies, hospitals and clinical diagnostic labs, universities, research institutions, and government agencies, as well as environmental, industrial quality and process control settings. Thermo has benefited from sales of products and services related to COVID-19, such as diagnostic testing, personal protective equipment, and pharmaceutical services, which we think demonstrates the company’s broad capabilities and critical role in the life sciences industry. Although some of this revenue will taper off as the pandemic subsides, we think Thermo will continue to benefit from long-term secular tailwinds, including increased investments in life sciences, diagnostics, vaccine/therapeutics, and health care broadly. We think Thermo should be able to generate at least mid-to-high single-digit annual organic revenue growth well into the future driven by positive end-market trends and market share gains. We also expect Thermo to continue to use its strong free cash flow and balance sheet to create shareholder value through M&A and share repurchases.”
