Thermo Fisher: Life Science tools giant just had its clearing event and is a stealth reshoring winner
This high quality compounder is gaining share in every environment and enabling pharma innovation and reshoring of drug production
Welcome to the 28th investment case, 23rd resilience and 15th reshoring/sovereignty idea on Crack the Market (and the most comprehensive Thermo Fisher investment case you will find online)! Join me as I dissect the life science tool giant and very high quality compounder, riding some of the most structural trends in healthcare and able to leverage its market-leading portfolio and global manufacturing network to generate robust cash flows.
Twice a week, I will release deep dives into stocks and sectors that fit into the three themes that I see winning in this age of tariffs and deglobalization: resilience, sovereignty & reshoring, China. I will then deep dive into the opportunities in the AI data center value chain.
Take advantage of this once in a generation opportunity to build long term wealth by investing in great stocks that will deliver returns for your portfolio for years to come.
You can already read my first 27 deep dives, all of which I see as winners in this new world of tariffs and deglobalization:
ASML (reshoring & China idea): The most innovative company in the world will 2.5x its EPS by 2030.
LKQ (resilience idea): The most defensive business in the auto industry is a tariff winner and could become a compounder.
Atlas Copco (resilience, reshoring & China idea): The best industrials business in the world is on sale, extremely resilient and will benefit from US reshoring.
Badger Meter (resilience idea): The perfect business in the perfect end market, water meters are the definition of resilience.
Knorr Bremse (resilience idea): Who knew making brakes was this lucrative? Rerating with self help story and upside from German infra plan.
Flex (reshoring idea): The electronics manufacturing giant building Nvidia’s servers and enabling reshoring is becoming a better business.
Itron (resilience & reshoring idea): Riding the grid investment super cycle and enabling smart grids.
Roper (resilience idea): A resilient cashflow compounder in the software space with inflecting growth.
RELX (resilience idea): The company to own forever – one of the very best businesses on Earth.
CPKC (resilience & reshoring idea): The rail connecting Canada/US/Mexico and benefiting from reshoring.
Novo Nordisk (resilience idea): The most exciting pharma company in the world is misunderstood and its growth engine is ready to roar back to life.
Kurita (resilience, reshoring & China idea): Water services expert with improving margins and benefiting from reshoring of semiconductor production.
Halma (resilience idea): High quality compounder in safety, health and environmental technologies.
Quanta Services (resilience & reshoring idea): Countercyclical compounder riding a multi decade infrastructure buildout.
Infineon (China idea): Power semiconductor leader with strong structural drivers (AI power and China auto) amidst a cyclical recovery.
Hubbell (resilience & reshoring idea): Pure play on US electrification demand driven by AI and grid investment cycle.
Iberdrola (resilience & reshoring idea): Best integrated utility in the world with a stellar track record and solid growth driven by networks and renewables
Nvidia (AI & data center idea): The backbone of the AI world is unstoppable.
Veolia (resilience & reshoring idea): Resource management giant (water, waste, energy) due for a rerating.
TJX (resilience idea): The retail giant that keeps winning.
DSM-Firmenich (resilience idea): The diversified ingredient powerhouse benefiting from a transformational deal.
Zoetis (resilience idea): Leader in animal healthcare.
Prysmian (reshoring idea): Global cable leader entering a golden age.
Bentley Systems (resilience & reshoring idea): The software compounder bringing infrastructure into the AI age.
Givaudan (resilience idea): The highest quality and most resilient ingredient compounder has a compelling valuation.
First Solar (reshoring idea): The rising Sun in a new electricity supercycle.
Arcadis (resilience & reshoring idea): An engineering and design consultancy giant poised for a rerating.
After reading this article, you will understand why this company is so special thanks to its critical role in enabling the whole pharma sector (from diagnostics to drug discovery and production), what it does, why it is so defensive despite having seen some market volatility in the last few years, how it has reset the market’s expectations and why growth is finally at an inflection point, how it is a stealth reshoring winner and why it remains one of the best businesses to own for the next decade.
In this article I go through:
Thermo Fisher’s business and how it dominates the Life Science tool market.
Why it is the best positioned Life Science tool company, benefiting from some of the most important structural trends in healthcare and a secret reshoring winner.
How the company has been able to innovate and compound revenues, cashflow and EPS at mid teen levels for more than a decade.
How the company’s long term compounding is set to resume with MSD-HSD revenue growth and strong/DD EPS growth.
How its long term growth algorithm reset signals the end of a long period of underperformance and volatility.
