1. Thermo Fisher Scientific Inc. (NYSE:TMO)
Upside Potential: 51.94%
Number of Hedge Fund Holders: 100
Thermo Fisher Scientific Inc. (NYSE:TMO) is a world leader in the provision of laboratory products, analytical tools, diagnostics, and scientific solutions in the life sciences. With operations across North America, Europe, Asia-Pacific, and beyond, the company provides cutting-edge tools and services to serve industrial, healthcare, and research applications.
The company reported $42.9 billion in revenue and adjusted EPS of $21.86 per share for the year. Results for the fourth quarter revealed an 8% increase in adjusted EPS to $6.10 and a 5% increase in revenue to $11.4 billion. With margins increasing to 23.9%, adjusted operating income increased by 7% to $2.72 billion. Thermo Fisher Scientific Inc. (NYSE:TMO) produced growth in electron microscopy, diagnostics, and pharmaceutical services throughout the end markets. Disciplined capital allocation, which included $4 billion in share buybacks, helped the company’s full-year free cash flow reach $7.3 billion.
Highlights of the segment-wise performance included Analytical Instruments’ 8% organic growth, which was fueled by increasing demand for mass spectrometry and electron microscopy. On the other hand, Specialty Diagnostics and Laboratory Products demonstrated sustained progress, bolstered by advancements in clinical research and transplant diagnostics, while Life Sciences Solutions increased its margin to 36.4%. Looking ahead, the company anticipates 3% to 4% organic growth and adjusted EPS between $23.10 and $23.50 in 2025, supported by productivity increases and the tried-and-true PPI Business System.
The Krios 5 Cryo-TEM, a next-generation imaging platform with improved optics and AI-enabled automation, was recently introduced by Thermo Fisher Scientific Inc. (NYSE:TMO). With up to 25% more throughput than previous models, it makes atomic-level structural biology discoveries possible. Additionally, the system has sustainable design components that assist environmental and energy efficiency objectives. For investors following Ken Fisher’s stock portfolio, in which Thermo Fisher continues to be a strategic investment, this innovation demonstrates the company’s dedication to furthering scientific discovery.
Overall, Thermo Fisher Scientific Inc. (NYSE:TMO) ranks first among Billionaire Ken Fisher’s 10 Finance Stock Picks with Huge Upside Potential. While we acknowledge the potential of these companies, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than TMO but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
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