Core Insights - Thermo Fisher Scientific Inc. (TMO) is a leading provider of life sciences solutions, analytical instruments, specialty diagnostics, and laboratory products, with a market cap of $220.3 billion [1] Performance Overview - TMO shares have underperformed compared to the broader market, gaining 8.7% over the past year, while the S&P 500 Index has increased by nearly 14.5% [2] - In 2025, TMO stock is up 13%, compared to the S&P 500's 16.5% rise year-to-date [2] Sector Comparison - TMO has outperformed the Health Care Select Sector SPDR Fund (XLV), which gained about 3.8% over the past year, and TMO's year-to-date gains surpass the ETF's 11.1% returns [3] Market Challenges - TMO's underperformance is attributed to economic weakness in China, pricing pressures, and cautious spending by academic institutions and governments [4] - Diagnostics in China are struggling, while Europe shows modest improvement, and the U.S. market remains stable but uncertain [4] Financial Performance - On October 22, TMO reported Q3 results, with an adjusted EPS of $5.79, exceeding Wall Street expectations of $5.50, and revenue of $11.1 billion, beating forecasts of $10.9 billion [5] - For the current fiscal year ending in December, analysts expect TMO's EPS to grow by 4% to $22.74 on a diluted basis [5] - TMO has a strong earnings surprise history, beating consensus estimates in each of the last four quarters [5] Analyst Ratings - Among 23 analysts covering TMO, the consensus rating is a "Strong Buy," with 16 "Strong Buy" ratings, two "Moderate Buys," and five "Holds" [6] - This rating configuration is less bullish than a month ago, when 17 analysts suggested a "Strong Buy" [7]

Core Insights - Diamond Hill Capital's "Large Cap Fund" underperformed the Russell 1000 Value Index in Q3 2025 despite a market rally, with the Russell 3000 Index gaining 8% and calendar-year returns exceeding 14% [1] Company Highlights - Thermo Fisher Scientific Inc. (NYSE:TMO) was highlighted in the investor letter, showing a one-month return of 6.16% and a 52-week gain of 2.11%, with a closing stock price of $567.64 and a market capitalization of $213.267 billion as of November 5, 2025 [2] - The company reported a revenue growth of 3% in Q2, reaching $10.85 billion, and is ranked 26th among the 30 Most Popular Stocks Among Hedge Funds, with 117 hedge fund portfolios holding its stock at the end of Q2 2025 [4] - Diamond Hill Capital initiated four new positions in Q3 2025, including Thermo Fisher Scientific Inc., indicating a belief that its stock price does not reflect its long-term growth potential [3]

Core Insights - Emerson Electric reported quarterly earnings of $1.62 per share, matching the Zacks Consensus Estimate, and showing an increase from $1.48 per share a year ago [1] - The company posted revenues of $4.86 billion for the quarter ended September 2025, which was 0.6% below the Zacks Consensus Estimate, but up from $4.62 billion year-over-year [2] - Emerson Electric has surpassed consensus EPS estimates three times over the last four quarters, while it has only topped revenue estimates once in the same period [2] Earnings Performance - The earnings surprise for the previous quarter was +0.66%, with actual earnings of $1.52 per share compared to an expected $1.51 [1] - The current consensus EPS estimate for the upcoming quarter is $1.48, with expected revenues of $4.39 billion, and for the current fiscal year, the EPS estimate is $6.51 on revenues of $18.92 billion [7] Stock Performance and Outlook - Emerson Electric shares have increased by approximately 11.1% since the beginning of the year, while the S&P 500 has gained 15.1% [3] - The company's Zacks Rank is currently 2 (Buy), indicating expectations for the stock to outperform the market in the near future [6] Industry Context - The Manufacturing - Electronics industry, to which Emerson Electric belongs, is currently ranked in the top 17% of over 250 Zacks industries, suggesting a favorable outlook for stocks within this sector [8]

Core Viewpoint - Baron Health Care Fund's performance in Q3 2025 was a 5.39% increase, slightly outperforming the Russell 3000 Health Care Index's 5.05% gain, but lagging behind the broader Russell 3000 Index's 8.18% increase, primarily due to stock selection offset by negative impacts from sub-industry allocations and cash holdings during a rising market [1] Group 1: Fund Performance - The Baron Health Care Fund rose 5.39% in Q3 2025 compared to a 5.05% gain for its benchmark [1] - The fund's performance was similar to the benchmark, with solid stock selection being offset by negative effects from active sub-industry allocations and cash holdings [1] Group 2: Thermo Fisher Scientific Inc. (NYSE:TMO) - Thermo Fisher Scientific Inc. is highlighted as a key stock in the fund's portfolio, with a one-month return of 4.31% and a 52-week gain of 2.15% [2] - As of October 31, 2025, Thermo Fisher's stock closed at $567.39, with a market capitalization of $214.253 billion [2] - The fund added to its position in Thermo Fisher, which is expected to achieve 3% to 6% organic revenue growth in 2026 and 2027, with potential for mid-to-high single-digit adjusted operating income growth [3] - Management anticipates that beyond 2027, Thermo Fisher could deliver over 7% organic revenue growth due to positive long-term drivers in the life sciences tools industry [3] - Thermo Fisher Scientific's revenue grew 3% to $10.85 billion in Q2 2025, and it ranks 26th among the 30 most popular stocks among hedge funds, with 117 hedge fund portfolios holding its shares [4]

Group 1 - Thermo Fisher Scientific Inc. (NYSE:TMO) has faced challenges due to COVID-19, with comparisons made to Danaher, which is perceived to have a stronger position currently [1][2] - Jim Cramer highlighted that while Thermo Fisher is a great company led by Marc Casper, he recommends Danaher for investment, indicating a preference for DHR over TMO [1][2] - Cramer advised against purchasing Thermo Fisher stock until there is an improvement in Chinese orders, citing the stock's recent struggles and its connection to the bearish outlook on China [2] Group 2 - The company provides a range of services including life sciences solutions, analytical instruments, diagnostics, lab products, and biopharma services [2] - There is a belief that certain AI stocks may offer better investment opportunities with higher upside potential and lower downside risk compared to Thermo Fisher [2]

Group 1 - Thermo Fisher Scientific Inc. (NYSE:TMO) is considered one of the best medical stocks to buy currently, with analysts from Bank of America Securities and Bernstein reiterating Buy ratings and setting price targets of $560.00 and $570.00 respectively [1][2] - Barclays upgraded Thermo Fisher Scientific Inc. from Equal Weight to Overweight on September 11, raising its price target from $490 to $550 [2] - The company provides a range of products and services including analytical instruments, reagents, equipment, software, and services for analysis, research, diagnostics, and discovery, operating through various segments [3]

Company Performance - Emerson Electric closed at $129.02, reflecting a -4.9% change from the previous day, underperforming the S&P 500's daily loss of 0.13% [1] - Over the past month, Emerson Electric's shares gained 2.91%, while the Industrial Products sector and the S&P 500 gained 1.77% and 2.71%, respectively [1] Upcoming Earnings - Analysts expect Emerson Electric to report earnings of $1.62 per share, indicating a year-over-year growth of 9.46% [2] - The revenue forecast for the upcoming earnings report is $4.9 billion, representing a 6.05% increase compared to the same quarter last year [2] Full Year Estimates - For the full year, earnings are projected at $6 per share and revenue at $18.06 billion, showing year-over-year changes of +9.29% and +3.27%, respectively [3] - Recent changes in analyst estimates may indicate shifting business trends, with positive revisions suggesting optimism about the company's outlook [3] Zacks Rank and Valuation - Emerson Electric currently holds a Zacks Rank of 3 (Hold), with a recent upward shift of 0.07% in the Zacks Consensus EPS estimate [5] - The company has a Forward P/E ratio of 22.6, which is lower than the industry average of 22.86, suggesting it is trading at a discount [6] - Emerson Electric's PEG ratio stands at 2.64, compared to the industry average of 1.82, indicating a higher valuation relative to its projected earnings growth [6] Industry Context - The Manufacturing - Electronics industry, part of the Industrial Products sector, has a Zacks Industry Rank of 154, placing it in the bottom 38% of over 250 industries [7] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [7]