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.
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 (39.9% of total revenues in 2021) was added post the acquisition of Life Technologies. It incorporates majority of the former Life Technologies and Thermo Fisher’s Biosciences businesses. In 2021, this business registered growth of 28.5% from 2020.
Analytical Instruments: Formerly known as Analytical Technology, this segment (15.5%) has been renamed in order to reflect the transfer of the bioprocess production business to the newly formed Life Sciences Solutions Segment. In 2021, this business registered growth of 18.4% from 2020.
Specialty Diagnostics (SD): This segment (14.4%), 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 2021, this business registered growth of 5.9% from 2020.
Laboratory Products and Biopharma Services: Formerly known as Laboratory Products and Services, this segment (37.9%) has been renamed to to reflect the inclusion of the PPD acquisition. PPD will be referred to as clinical research business within this segment. This segment 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 2021, this business registered growth of 21.4% from 2020.
While anyone can invest, building a lucrative investment portfolio takes research, patience, and a little bit of risk. If you had invested in Thermo Fisher Scientific ten years ago, you're probably feeling pretty good about your investment today.
A $1000 investment made in August 2012 would be worth $10,591.99, or a 959.20% gain, as of August 2, 2022, according to our calculations. Investors should note that this return excludes dividends but includes price increases.
The S&P 500 rose 199.47% and the price of gold increased 7.07% over the same time frame in comparison.
Going forward, analysts are expecting more upside for TMO.
Thermo Fisher exited the second quarter of 2022 with better-than-expected results. The robust year-over-year revenue growth in the Analytical Instruments and the Laboratory Products and Biopharma Services segments appears promising. The company’s strategic acquisitions of PPD, Inc. and PeproTech raise investors’ confidence. Thermo Fisher’s accelerated investments to expand bioproduction capacity also buoy optimism. The upbeat guidance for 2022 is indicative that this growth momentum will continue. Thermo Fisher has outperformed its industry in the past year. However, the year-over-year decline in revenues in the Specialty Diagnostics segment is disappointing. The contraction of both margins does not bode well either.
The stock has jumped 7.53% over the past four weeks. Additionally, no earnings estimate has gone lower in the past two months, compared to 9 higher, for fiscal 2022; 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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