Echo Street Capital Management: Greg Poole’s Top 5 Stock Picks

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

Echo Street Capital’s Stake Value: $230,611,000

Percentage of Echo Street Capital’s 13F Portfolio: 1.77%

Number of Hedge Fund Holders: 87

Thermo Fisher Scientific Inc. (NYSE:TMO), a top stock pick of Echo Street Capital Management as of the second quarter, is a company offering scientific instruments, laboratory reagents and consumables, and scientific software for research and data analysis. Echo Street Capital Management owns 457,136 shares in Thermo Fisher Scientific Inc. (NYSE:TMO), valued at $230.61 million, representing 1.77% of the firm’s Q2 portfolio. 

Thermo Fisher Scientific Inc. (NYSE:TMO) announced on October 27 a Q3 EPS of $5.76, beating estimates by $1.06. The firm’s revenue also exceeded estimates at $9.33 billion by $925.71 million. 

Morgan Stanley analyst Tejas Savant kept a $700 price target on Thermo Fisher Scientific Inc. (NYSE:TMO) on October 28, resuming coverage of the stock with an Overweight rating. He said that the Q3 performance was strong, and Thermo Fisher Scientific Inc. (NYSE:TMO) is positioned to outperform in 2022. 

At the end of the second quarter of 2021, 87 hedge funds in Insider Monkey’s database of elite funds reported owning stakes in Thermo Fisher Scientific Inc. (NYSE:TMO), up from 79 in the preceding quarter. 

Here is what ClearBridge Investments has to say about Thermo Fisher Scientific Inc. (NYSE:TMO) in its Q2 2021 investor letter:

“Two additional names in the health care sector in the quarter, partially funded with a sale, made strong contributions and helped push our relative exposure to the sector from underweight to overweight. We added Thermo Fisher Scientific to increase our exposure to health care tools, which has been an attractive and core segment within health care. Thermo Fisher’s instruments are used to monitor and protect air, water, and food quality, and the company has strong long-term fundamentals, a top-tier management team and a diversified business.”