/Thermo%20Fisher%20Scientific%20Inc_%20logo%20on%20building-by%20JHVEPhoto%20via%20iStock.jpg)
Waltham, Massachusetts-based Thermo Fisher Scientific Inc. (TMO) provides life sciences solutions, analytical instruments, specialty diagnostics, and laboratory products and biopharma services. Valued at $220.3 billion by market cap, the company provides a portfolio of reagents, instruments, and consumables for research, drug development, and disease diagnosis, along with laboratory products and biopharma services.
Shares of this leading provider of scientific research services and products have underperformed the broader market over the past year. TMO has gained 8.7% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 14.5%. In 2025, TMO stock is up 13%, compared to the SPX’s 16.5% rise on a YTD basis.
Narrowing the focus, TMO’s outperformance is apparent compared to the Health Care Select Sector SPDR Fund (XLV). The exchange-traded fund has gained about 3.8% over the past year. Moreover, TMO’s gains on a YTD basis outshine the ETF’s 11.1% returns over the same time frame.
TMO's underperformance is attributed to China’s economic weakness, pricing pressures, and cautious spending by academics and governments. China's diagnostics are still struggling, while those in Europe show modest improvement, and the U.S. remains stable but uncertain.
On Oct. 22, TMO shares closed up by 1.7% after reporting its Q3 results. Its adjusted EPS of $5.79 topped Wall Street expectations of $5.50. The company’s revenue was $11.1 billion, beating Wall Street forecasts of $10.9 billion.
For the current fiscal year, ending in December, analysts expect TMO’s EPS to grow 4% to $22.74 on a diluted basis. The company’s earnings surprise history is impressive. It beat the consensus estimate in each of the last four quarters.
Among the 23 analysts covering TMO stock, the consensus is a “Strong Buy.” That’s based on 16 “Strong Buy” ratings, two “Moderate Buys,” and five “Holds.”
This configuration is less bullish than a month ago, with 17 analysts suggesting a “Strong Buy.”
On Nov. 3, Stifel Nicolaus analyst Daniel Arias maintained a “Buy” rating on TMO and set a price target of $583.
The mean price target of $614.30 represents a 4.5% premium to TMO’s current price levels. The Street-high price target of $675 suggests an upside potential of 14.8%.
On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
/Pfizer%20Inc_%20logo%20sign-by%20JHVEPhoto%20via%20iStock.jpg)
/Netflix%20on%20tv%20with%20remote%20by%20freestocks%20via%20Unsplash.jpg)
