For most investors, how much a stock's price changes over time is important. This factor can impact your investment portfolio as well as help you compare investment results across sectors and industries.
The fear of missing out, or FOMO, also plays a factor in investing, especially with particular tech giants, as well as 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.
In terms of end market served, there are four divisions-- pharmaceutical and biotech, academic and government, industrial and applied, and healthcare and diagnostics.
Following the acquisition, the new reporting segments are:
The Life Sciences Solutions segment, representing 22.5% of total revenues in 2024, was added post the acquisition of Life Technologies. It incorporates the majority of the former Life Technologies and Thermo Fisher’s Biosciences businesses. In 2024, this business registered a decline of 3.5% from the 2023 level.
In July 2024, Thermo Fisher acquired Olink, a provider of next-generation proteomics solutions.
The Analytical Instruments (formerly known as Analytical Technology) segment, which represented 17.4% of total revenues in 2024, has been renamed to reflect the transfer of the bioprocess production business to the newly formed Life Sciences Solutions Segment. In 2024, this business registered growth of 2.7% from the 2023 level.
The Specialty Diagnostics (SD) segment represents 10.5% of total revenues, 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 2024, this business registered growth of 2.4% from the 2023 level.
Laboratory Products and Biopharma Services, formerly known as Laboratory Products and Services, represents 54% of total revenues. It has been renamed to reflect the inclusion of the PPD acquisition. PPD has been referred to as a clinical research business within this segment. In 2024, this business registered growth of 0.5% from the 2023 level.
Bottom Line
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 January 2016 would be worth $4,412.68, or a 341.27% gain, as of January 6, 2026, according to our calculations. Investors should note that this return excludes dividends but includes price increases.
Compare this to the S&P 500's rally of 242.24% and gold's return of 290.52% over the same time frame.
Analysts are anticipating more upside for TMO.
Thermo Fisher continues to strengthen its foundation by consistently advancing its growth strategy. The company's latest round of innovations supports scientific breakthroughs, advances precision medicine and greater lab productivity for customers. Thermo Fisher is embedding OpenAI's capabilities into its products and services to make an even bigger impact for customers and enhance productivity. Strategic acquisitions, such as the newly added Solventum's Purification and Filtration Business, further enhance its offerings. Our model forecasts a 5.1% CAGR growth in the company's revenues through 2025-2027. Meanwhile, a highly leveraged balance sheet poses liquidity concerns. Shifting U.S. policies have weighed on the academic and government end-market clients, affecting its sales. Currency woes add to the worry.
The stock is up 7.57% over the past four weeks, and no earnings estimate has gone lower in the past two months, compared to 2 higher, for fiscal 2025. The consensus estimate has moved up as well.
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Thermo Fisher Scientific Inc. (TMO): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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