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How much a stock's price changes over time is a significant driver for most investors. Not only can price performance impact your portfolio, but it can help you compare investment results across sectors and industries as well.
Another thing that can drive investing is the fear of missing out, or FOMO. This particularly applies to tech giants and popular consumer-facing stocks.
What if you'd invested in Thermo Fisher Scientific (TMO) ten years ago? It may not have been easy to hold on to TMO for all that time, but if you did, how much would your investment be worth today?
Thermo Fisher Scientific's Business In-Depth
With that in mind, let's take a look at Thermo Fisher Scientific's main business drivers.
Headquartered in Waltham, MA, Thermo Fisher Scientific is a scientific instrument maker and a world leader in serving science. In Nov 2006, Thermo Fisher Scientific, Inc. was formed through the merger of Thermo Electron Corporation with Fisher Scientific International Inc. On Feb 3, 2014, Thermo Fisher acquired Life Technologies Corporation.
Following the acquisition, the new reporting segments are:
Life Sciences Solutions Segment: This segment (50.2% of total revenues in 2020) was added post the acquisition of Life Technologies. It incorporates majority of the former Life Technologies and Thermo Fisher’s Biosciences businesses. In 2020, this business registered growth of 77% from 2019.
Analytical Instruments: Formerly known as Analytical Technology, this segment (15.8%) has been renamed in order to reflect the transfer of the bioprocess production business to the newly formed Life Sciences Solutions Segment. In 2020, this business registered decline of 7.2% from 2019.
Specialty Diagnostics (SD): This segment (25.6%), formed after the acquisition of Phadia, serves customers in healthcare and clinical laboratories with a portfolio of diagnostic test kits, reagents and instruments used to increase the speed and accuracy of diagnoses to improve patient care. In 2020, this business registered growth of 44% from 2019.
Laboratory Products and Services (LPS): This segment (10.4%) serves laboratory customers with equipment and consumables that improve productivity and a range of BioPharma outsourcing services. This segment also includes the company’s research and safety market customer channels. Post-acquisition, Thermo Fisher’s Global Chemicals business has moved to the Laboratory Products and and Services Segment. In 2020, this business registered growth of 28% from 2019.
Anyone can invest, but building a successful investment portfolio requires research, patience, and a little bit of risk. So, if you had invested in Thermo Fisher Scientific ten years ago, you're likely feeling pretty good about your investment today.
A $1000 investment made in June 2011 would be worth $7,727, or a 672.70% gain, as of June 23, 2021, according to our calculations. Investors should note that this return excludes dividends but includes price increases.
In comparison, the S&P 500 gained 229.91% and the price of gold went up 12.07% over the same time frame.
Analysts are anticipating more upside for TMO.
Thermo Fisher has outperformed its industry in the past year. The company delivered an outstanding performance banking on accelerated growth in Base business in the first quarter 2021. Immunodiagnostics business returned to strong growth in the quarter. Demand for COVID-19 testing solutions was very strong. The company generated $2.9 billion of COVID-19 response revenue. In terms of end market, pharma and biotech registered growth on robust performance in bioproduction and pharma services. In diagnostics and healthcare, the company experienced high demand for COVID-19 testing. A strong capital structure looks encouraging. Notably, the company ended the first quarter with better-than-expected numbers. However, the pandemic has massively disrupted the global supply chain. Foreign currency fluctuations and competitive landscape are major downsides.
Shares have gained 6.08% over the past four weeks and there have been 9 higher earnings estimate revisions for fiscal 2021 compared to none lower. The consensus estimate has moved up as well.
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Thermo Fisher Scientific Inc. (TMO) : Free Stock Analysis Report
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