Stock Of Thermo Fisher Has Soared

Thermo Fisher Scientific (TMO) is a Massachusetts-based global leader in laboratory equipment, analytical instruments, and specialty diagnostics tools, catering to the healthcare, pharmaceutical, and biotech industries. 

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The company's products have helped researchers create new drugs and tests that save lives. During the pandemic, earnings per share doubled from $12.35 in 2019 to over $25 in 2021, thanks to the surge in Covid-19 testing. The stock now trades more cheaply than it did at the beginning of 2020, despite sales hitting new records. 

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The projected per-share profit is below the record of $25.13 earned in 2021, but consensus estimates call for earnings to reach over $30 a share in 2025. The shares are currently trading at 24 times forward earnings, which is about the five-year average and below the pandemic high of 26.6 in December of 2021. 

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The average analyst price target is above $650, almost 15% higher than the current price of around $574. Thermo Fisher has enjoyed steady recurring revenue among loyal customers, and its products help in the intricate research and development process of newer products like biologics and larger molecule drugs. 

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Thermo Fisher has a good track record of supplying a number of growing healthcare end markets, and the company looks attractive for long-term investors.

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