Thermo Fisher Scientific Stock: Is TMO Outperforming the Health Care Sector?

TMO -0.76% XLV -0.22%

With a market cap of $220 billion, Thermo Fisher Scientific Inc. (TMO) is a prominent Massachusetts-based biotechnology and life sciences company that provides a wide range of products and services for research, diagnostics, and laboratory operations. Its offerings include analytical instruments, laboratory equipment, reagents, consumables, and software solutions, serving pharmaceutical, biotech, healthcare, and academic sectors globally.

Companies valued at $10 billion or more are generally described as “large-cap” stocks, and Thermo Fisher Scientific fits this description perfectly. Known for its scale and innovation, it enables scientific research, drug development, and clinical diagnostics, making it a critical player in the life sciences and healthcare ecosystem.

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TMO shares have retreated 2.2% from their 52-week high of $610.97 touched on Jan. 30. Moreover, TMO stock has surged 21.8% over the past three months, outpacing the Health Care Select Sector SPDR Fund’s (XLV) 16.6% decline during the same time frame.

However, TMO is up 14.9% on a YTD basis, lagging behind XLV’s 15.4% rise. Additionally, shares of Thermo Fisher Scientific have surged 16.3% over the past 52 weeks, surpassing the XLV’s 9.2% increase over the same period.

TMO stock has been trading above its 50-day and 200-day moving averages since early October, indicating a recent uptrend.

On Nov. 24, Thermo Fisher Scientific priced a €2.1 billion ($2.4 billion) euro-denominated bond offering through its finance subsidiary, consisting of €1.0 billion floating-rate notes due 2027 and €1.1 billion ($1.3 billion) fixed-rate notes due 2035, both at par and fully guaranteed by Thermo Fisher. The offering, expected to close around Dec. 1, 2025, will fund general corporate purposes, including potential acquisitions, debt repayment or refinancing, working capital, capital expenditures, or share repurchases, with any interim proceeds held in short-term liquid investments. Following the announcement, Thermo Fisher’s shares rose 2% in the next trading session.

Leading competitor IDEXX Laboratories, Inc. (IDXX), has outperformed Thermo Fisher, with shares up 85.4% year-to-date and 78.9% over the past 52 weeks.

Despite TMO’s underperformance over the past year, analysts remain highly optimistic about its prospects. Among the 22 analysts covering the stock, there is a consensus rating of “Strong Buy,” and its mean price target of $614.30 suggests a 2.8% upside potential from current price levels.

On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com