Thermo Fisher Scientific (TMO)

He sees many IPOs that will need TMO's machines. Trades at a cheap 19x PE.

Is buying this pullback. Expectations for this year were lower interest rates, a tailwind, but the war has raised fears of inflation, therefore of the Fed holding rates. TMO supplies the picks and shovels to the entire healthcare industry, which is a good way to healthcare.

One of her holdings in the space. This higher-quality name has both growth and less execution risk.

"The AMZN of life sciences." Massive, diversified giant. Pressure from biotech funding crunch, high interest rates, and both softness and a new procurement bidding system in China. This has all dampened pricing and margins. 

Likes its good, recurring revenue stream at 50% or even more. Global scale, dominant market positions, unmatched supply chains, significant moats against small competitors. Yield is 0.34%.

The biggest company in life sciences. Are focusing on clinical research services. TMO suffered a bad decline early this year, but has strongly recovered since then. Is up more than 50% since mid-June lows. They last reported a top and bottom line beat and raised full-year guidance. Tough areas like academia and China are growing again. Are partnering with openAI to speed up developing new tools and technology and drug development. Acquisitions are working.

Both are in the same space of life sciences products, though DHR trades at a slightly higher valuation.

Owns and likes this name. Picks and shovels to the healthcare industry. Can help a company take a drug from development to clinical trials to production. Clients include healthcare, pharma, government, and labs. Growth slowed a bit after Covid, in China, and with higher interest rates. CEO still expects industry to grow 5-7%. Demographics makes healthcare a long-term growth story.

Any small wrinkle imposed by Trump withdrawing funding to universities is offset by its geographic and client diversification.

Starting to see a bit of turnaround in the healthcare space. She bought in March, and again in June; trimmed in October, taking some profits. Pharma and biotech spending starting to pick up, especially in cell and gene therapy. OpenAI partnership is major step forward. Cashflow remains very healthy. Ranks 8/10, still sees double-digit upside.

He continued to buy over the year as it dropped below $500. Took longer than expected, but now we're starting to see the whole health sciences space do much better. We're early cycle, and he plans to hold for next 5 years.

Demand from biopharma and research labs is improving. Core business has a healthy outlook. Have a big backlog and smoother execution are a growth engine. Is trading below historic valuations. Has 19% upside.

It is a high quality company and he likes it. He wants to see more consistency and less cyclicality. The industry should do well over time.

Is expensive, trading at a high PE historically. Cash flow and revenues growth are slowing, due to the Covid echo. Also, the healthcare is now a tough sector.

A quality name, but the sector has been unloved, which has dragged down TMO, but this won't last.

He bought it, because TMO based out at $400 and delivered a tremendous earnings report last week. He's underweight health. Great for the long term. Is buying during this pullback. Falling interest rates will be a tailwind for biotechs.

They just reported a strong quarter. There are signs of restocking--and demand for their products. They are one of the dominant diagnostic tools companies. They had tariff uncertainty in China. Also, the US has been cutting health funding, which reduces demand for TMO products used in R&D. However, TMO remains best in class.