Both these drugmakers offer gains ahead: Thermo Fisher and Eli Lilly

Article Excerpt

We think the drug industry will enjoy great success over the next decade. But due to the nature of the business, results will vary widely and unpredictably from one drug company to another. A volatile market like the one we expect for drug stocks will include winners and losers. Here are two that we expect to be among the big winners. THERMO FISHER SCIENTIFIC INC. $498.46, is a buy. Your shares (New York symbol TMO; TSINetwork Rating: Average) (www.thermofisher.com; Shares outstanding: 396.3 million; Market cap: $198.2 billion; Dividend yield: 0.2%) let you tap this leading manufacturer of scientific instruments, laboratory equipment, diagnostic consumables, and life science reagent chemicals. In the quarter ended December 31, 2020, Thermo Fisher’s revenue jumped 54.5%, to $10.55 billion from $6.83 billion a year earlier. Excluding one-time items, the company earned $2.84 billion, or $7.09 a share, in the latest quarter; that’s up 98.5% from $1.43 billion, or $3.55. The latest results benefitted from strong COVID-related sales of testing equipment and so on…