Topic: How To Invest

Power Growth Investor Hotline – Friday, July 28, 2023

Article Excerpt

THERMO FISHER SCIENTIFIC INC., $561.85, is a buy. The company (symbol TMO on New York) lets you tap this leading manufacturer of scientific instruments, laboratory equipment, diagnostic consumables, and life science reagents. The shares are now up 72.4% for our subscribers since we first recommended the stock in the May 2020 issue of Power Growth Investor at $325.83 a share. We still think they have room to move higher. In the quarter ended July 1, 2023, Thermo Fisher’s revenue fell 2.6%, to $10.69 billion from $10.97 billion a year earlier. The decline was mostly due to lower revenue from COVID-related sales of testing equipment as the pandemic eased. Without that, revenue rose by 2%. Excluding one-time items, per-share earnings fell 6.5%, to $5.15 from $5.51. Earnings fell along with sales. Overall, Thermo Fisher has relied on acquisitions for growth; it also has a high p/e and low yield. That combination leaves the company’s shares vulnerable to a sharp setback on bad corporate news or overall stock market weakness. Still,…