Billionaire Quants’ Two Sigma’s 10 Stock Picks with Huge Upside Potential

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

Two Sigma Advisors Stake Value: $485,478,636

Upside Potential as of May 8: 38.03%

Number of Hedge Fund Holders: 100

Thermo Fisher Scientific Inc. (NYSE:TMO) is a global leader in scientific research and laboratory solutions. It provides tools, technologies, and services to help scientists, healthcare professionals, and businesses advance discoveries and improve lives.

The company has recently made several moves to strengthen its market position. On April 24, 2025, Thermo Fisher Scientific Inc. (NYSE:TMO) announced a $2 billion investment in the US over the next four years. The first $1.5 billion will be allocated to capital expenditures for enhancing and expanding US manufacturing operations, and $500 million will go to R&D focused on high-impact innovation. This investment builds on the company’s substantial presence in US manufacturing, which already includes 64 operations across 37 states. On April 28, 2025, Thermo Fisher Scientific Inc. (NYSE:TMO) introduced an enhanced platform technology and a new CHO K-1 cell line that can reduce timelines to Investigational New Drug (IND) filing from 13 to nine months. The solution helps biotech and pharmaceutical companies overcome logistical complexities in pre-clinical biologic drug development.

The company has also taken some cost-cutting measures. On May 3, 2025, Thermo Fisher (NYSE:TMO) announced it would close its location near downtown Orlando and lay off 58 employees. The move will primarily affect researchers, nurses, and staff tied to its PPD Clinical Research Services division. On April 25, Scotiabank analyst Sung Ji Nam adjusted the price target for Thermo Fisher Scientific Inc. (NYSE:TMO) to $605 from $650. Nam wrote that although the company surpassed expectations in its first quarter results of 2025, it revised the full-year guidance. Nevertheless, Nam maintained a Sector Perform rating.