Waltham, Massachusetts-based Thermo Fisher Scientific Inc. (TMO) provides life sciences solutions, analytical instruments, specialty diagnostics, laboratory products, and biopharma services. It is valued at a market cap of $202.8 billion. This healthcare company has trailed the broader market over the past 52 weeks. Shares of TMO have declined 2.4% over this time frame, while the broader S&P 500 Index ($SPX) has gained 14.4%. Moreover, on a YTD basis, the stock is down 6.8%, compared to SPX’s 1.4% rise. ...

Baron Funds, an investment management company, released its fourth-quarter investor letter for the “Baron Health Care Fund”. A copy of the letter can be downloaded here. The fund rose 13.10% (Institutional Shares) in the quarter, compared to a 11.92% gain for the Russell 3000 Health Care Index (benchmark) and a 2.40% gain for the Russell 3000 Index (the Index). The Fund returned 10.28% for the full year, compared to 14.56% and 17.15% gains for the indexes, respectively. Strong stock selection in biotechnol ...

Core Thesis - Thermo Fisher Scientific Inc. (TMO) is positioned as a strong investment opportunity in the healthcare and pharmaceutical sectors, benefiting from structural demand and a unique business model that minimizes risks associated with drug development [2][3]. Company Overview - Thermo Fisher provides a wide range of life sciences solutions, analytical instruments, specialty diagnostics, laboratory products, and biopharma services globally, making it a key player in the healthcare innovation landscape [2]. - The company commands approximately 15% of the global life sciences tools and services market, forming a duopoly with Danaher [3]. Market Dynamics - The healthcare demand is resilient due to aging populations, rising chronic diseases, and increased healthcare spending in emerging markets, which supports long-term growth for companies like Thermo Fisher [2]. - The shift towards more complex medicine, including biologics and precision therapies, increases the demand for infrastructure providers, positioning Thermo Fisher favorably within the ecosystem [3]. Business Model - Thermo Fisher's business model focuses on embedding itself throughout the drug development lifecycle, which reduces exposure to patent cliffs and demand volatility [4]. - The company generates significant revenue from high-margin consumables tied to its installed base, creating a recurring revenue stream that enhances financial stability [4]. Financial Performance - Recent operational results indicate improving fundamentals, with the company experiencing positive organic growth and an acceleration in demand from the pharmaceutical and biotech sectors [5]. - The disciplined approach to mergers and acquisitions (M&A) is a core value driver, enhancing capabilities and supporting robust free cash flow, which benefits shareholder returns [5].

Core Insights - Thermo Fisher Scientific Inc. (TMO) is a leading provider of life sciences solutions, analytical instruments, specialty diagnostics, laboratory products, and biopharma services, with a market cap of $218.2 billion [1] Financial Performance Expectations - Analysts expect TMO to report a profit of $6.44 per share for Q4 2025, reflecting a 5.6% increase from $6.10 per share in the same quarter last year [2] - For the full fiscal year 2025, TMO's EPS is projected to be $22.74, up 4% from $21.86 in fiscal 2024, and is expected to rise to $24.56 in fiscal 2026, an 8% year-over-year increase [3] Stock Performance - TMO stock has underperformed the S&P 500 Index, which gained 15.7% over the past 52 weeks, with TMO shares increasing by only 11.2% during the same period [4] - The stock also lagged behind the Health Care Select Sector SPDR Fund's 12.1% returns in the same timeframe [4] Market Challenges - The underperformance of TMO is attributed to weaknesses in China, pricing pressures, and cautious spending from academic and government sectors, with diagnostics in China still struggling [5] - While Europe shows modest improvement and the U.S. market remains stable but uncertain, these factors have impacted TMO's growth [5] Recent Earnings Report - On October 22, TMO shares rose by 1.7% following the release of Q3 results, where the adjusted EPS of $5.79 exceeded Wall Street's expectations of $5.50, and revenue reached $11.1 billion, surpassing the forecast of $10.9 billion [5] Analyst Ratings - The consensus opinion among analysts on TMO stock is bullish, with a "Strong Buy" rating from 18 out of 23 analysts, while two suggest a "Moderate Buy" and three give a "Hold" rating [6] - The average analyst price target for TMO is $636.90, indicating a potential upside of 8.9% from current levels [6]

Core Insights - The Artisan Value Fund's third-quarter 2025 performance was positive, with returns of 0.83% for Investor Class ARTLX, 0.91% for Advisor Class APDLX, and 0.90% for Institutional Class APHLX, compared to a 5.33% return for the Russell 1000 Value Index [1] Group 1: Market Context - The equity market rally continued in Q3 2025, driven by strong corporate earnings, increased AI investment, and expectations of economic support from US fiscal policy and lower interest rates [1] Group 2: Company Focus - Thermo Fisher Scientific Inc. - Thermo Fisher Scientific Inc. (NYSE:TMO) is highlighted as a key stock, providing life sciences solutions, analytical instruments, specialty diagnostics, laboratory products, and biopharma services [2] - The stock experienced a one-month return of -0.75% but gained 11.93% over the last 52 weeks, closing at $580.74 per share on December 26, 2025, with a market capitalization of $218.19 billion [2] - Thermo Fisher was one of the top contributors to returns in Q3, alongside Lam Research and ASML, following purchases made during a market downturn [3]

Group 1: Market Overview - The S&P 500 Index experienced a significant surge in Q3 2025, driven by investor optimism due to expectations of monetary easing, strong consumer demand, and solid corporate earnings [1] - The Parnassus Core Equity Fund (Investor Shares) returned 2.57% in Q3 2025, underperforming the S&P 500 Index, which returned 8.12% [1] - Year-to-date, the fund's return was 9.89%, compared to 14.83% for the S&P 500 Index [1] Group 2: Company Focus - Thermo Fisher Scientific Inc. - Thermo Fisher Scientific Inc. (NYSE:TMO) is highlighted as a key stock in the Parnassus Core Equity Fund's Q3 2025 investor letter, offering a range of life sciences solutions and services [2][3] - The stock of Thermo Fisher Scientific Inc. had a one-month return of -3.69% but gained 8.83% over the last 52 weeks, closing at $575.70 per share with a market capitalization of $216.3 billion on December 22, 2025 [2] - The company recovered from being oversold earlier in the year, supported by favorable financial results and guidance that exceeded expectations [3] Group 3: Investment Sentiment - Thermo Fisher Scientific Inc. ranked 26th on the list of the 30 Most Popular Stocks Among Hedge Funds, with 121 hedge fund portfolios holding the stock at the end of Q3 2025, an increase from 117 in the previous quarter [3] - While acknowledging the potential of Thermo Fisher Scientific Inc. as an investment, the company believes that certain AI stocks may offer greater upside potential and carry less downside risk [3]

Core Viewpoint - Thermo Fisher Scientific Inc. (TMO) is recognized as one of the best stocks to buy in the S&P 500, with a consensus Strong Buy rating from analysts and a one-year price target indicating a potential upside of 12% [1]. Analyst Updates - Wells Fargo raised its price target for TMO to $675 from $635, citing improved clarity on U.S. pharmaceutical policies and positive growth projections [2]. - Citigroup upgraded TMO's rating to Buy from Neutral and increased its price target to $660 from $580, driven by favorable trends in onshoring and pharmaceutical spending [3]. Company Overview - Thermo Fisher Scientific is a leading provider of life sciences solutions, laboratory products, diagnostics, analytical instruments, and biopharma services, with an 8% gain year-to-date in 2025 [4].

Market Overview - The S&P 500 index fell 1.16% to close at 6,721.43, marking the fourth consecutive day of decline due to an ongoing AI infrastructure selloff [1] - Despite the recent downturn, the S&P 500 is up 14.28% year-to-date, indicating a potential for a third consecutive year of double-digit gains [2] Analyst Insights - Brian Mulberry from Zacks Investment Management noted a rotation from large-cap growth to large-cap value, suggesting investors are adopting a more defensive posture ahead of next year [2] - A survey of nine major investment banks indicated a forecasted 10% gain in the S&P 500 over the next 12 months, with expectations that the index will surpass 7,500 by 2026 [3] Investment Methodology - The article identifies the top 14 S&P 500 stocks based on positive analyst sentiment and hedge fund interest, utilizing data from Insider Monkey's database as of Q3 2025 [5] - The strategy has historically outperformed the market, returning 427.7% since May 2014, significantly beating its benchmark [6] Company Highlights Thermo Fisher Scientific Inc. (NYSE:TMO) - Ranked 14th among the best S&P 500 stocks, with 121 hedge fund holders and a consensus Strong Buy rating [7] - Analysts have set a one-year average price target of $640.30, representing a 12% upside [7] - Wells Fargo raised its price target to $675 from $635, citing favorable U.S. government policies and growth projections [8] - Citigroup upgraded the stock to Buy from Neutral, increasing its price target to $660 from $580, driven by onshoring trends and increased pharmaceutical spending [9] - The stock has gained 8% year-to-date [10] Oracle Corporation (NYSE:ORCL) - Ranked 13th with 122 hedge fund holders and a consensus Moderate Buy rating [11] - Barclays maintains an Overweight rating with a price target of $310, while RBC Capital cut its target to $250 from $310 [11] - Oracle's diluted EPS of $2.26 exceeded estimates, but revenue and other key metrics fell short of expectations [12] - The company anticipates capital expenditures to be $15 billion higher than initially projected [13] - Future share price stability will depend on capital efficiency and free cash flow recovery [14] - Analysts have set a one-year average price target of $308.87, indicating a 67% upside [15]

Group 1 - Alamo Group Inc. (ALG) designs and manufactures high-quality agricultural equipment and provides infrastructure maintenance, with a nearly 10% downward revision in the Zacks Consensus Estimate for its current year earnings over the last 60 days [1] - Azenta, Inc. (AZTA) offers life sciences solutions, including sample management and laboratory automation, experiencing an 11.8% downward revision in the Zacks Consensus Estimate for its current year earnings over the last 60 days [2] - Chipotle Mexican Grill, Inc. (CMG) is a restaurant chain that has seen a 2.5% downward revision in the Zacks Consensus Estimate for its current year earnings over the last 60 days [2]

Group 1 - Harding Loevner's Global Equity Strategy reported a gross return of 2.62% and a net return of 2.52% for Q3 2025, underperforming the MSCI All Country World Index and MSCI World Index, which returned 7.74% and 7.36% respectively [1] - Year-to-date, the strategy has risen 10.61% net, compared to 18.86% and 17.83% for the respective indexes [1] - The last six months have been characterized as one of the strongest momentum phases in over 70 years, with high-momentum stocks outperforming low-momentum stocks by 45 percentage points, largely driven by advancements in AI [1] Group 2 - Thermo Fisher Scientific Inc. (NYSE:TMO) was highlighted as a key stock, with a one-month return of 2.56% and a 52-week gain of 11.44% [2] - As of December 3, 2025, Thermo Fisher's stock closed at $580.45 per share, with a market capitalization of $218.08 billion [2] Group 3 - The investor letter indicated that the Health Care sector is showing signs of recovery despite previous sales declines attributed to pandemic-inflated levels [3] - Operating fundamentals in key end markets are stabilizing, with improved hospital finances in early 2025 as volumes normalized and revenue growth outpaced expenses [3] - Medical technology and services companies are expected to gain better pricing power and a favorable sales mix if patient utilization stabilizes, while life sciences tools may benefit from improved capital budgets [3] - Thermo Fisher's management forecasted 3-6% organic revenue growth for the next year and 7% beyond 2027, which was better than investor expectations, leading to a positive stock performance [3]