TMO

Thermo Fisher Scientific was among the few Wall St firms to increase its share price this week against the falling S&P 500 barometer. The life science and clinical research firm generated $5.37 per share in Q2 and, compared to average analyst bets on $5.12 per share, and thus added 4.07% to more than $200 billion of its market value on July 24, while also raising its profit outlook for the rest of the year. The company's management now foresees annual earnings within a range between $21.29 and $22.07 per share, compared with its own previous estimates of $21.14 to $22.02 per share.

Thermo Fisher is a supplier of various analytical instruments for diagnostics, medicine laboratories, and so is part of the so-called "big pharma" industry. Not all the companies in this segment but many of them are feeling well and may be considered as a reasonable alternative to IT investments during the partial rotation in stock market. It is sufficient to recall an ever-trending Eli Lilly and climbing Merck. TMO's share price recently re-tested the technical support at $530, so that the following rebound may be a sign of targeting at an attempt to break through a $600 to $615 area that was cupping the further upside move since the spring of 2022, while keeping its $672.34 (January 2021) all-time high in mind.

The company's total sales were at $10.54 billion, almost in line with estimates of $10.51 billion, still below than $10.69 billion in Q2 2023, yet its major laboratory and biopharma services segment for clinical trials came out at $5.76 billion, well above consensus expectations of $5.48 billion. Its CEO Marc N. Casper who first joined the company in 2001 was talking much about strategic growth initiatives and the efficiency of its Practical Process Improvement (PPI) business system during the conference call. Most investors liked his commitment to innovations and high-impact products like the Thermo Scientific™ Stellar™ mass spectrometer, new editions of the Thermo Scientific Orbitrap Ascend Tribrid™ mass spectrometer, bioprocessing containers and ENERGY STAR-certified freezers.

Only a day ago, the company's rival Danaher witnessed "positive momentum" for products and services used to develop biological drugs to mark an improving background for the segment. The recent acquisition of Olink, which is a provider of next-generation proteomic solutions (related to the entire set of proteins in cells and tissues), may also help Thermo Fisher's leadership.