Long-time readers know that we aim to keep you informed of important news about the stocks we cover. That means highlighting developments and plans that promise to bolster investor gains. Here are two buys that stand out this month:
THERMO FISHER SCIENTIFIC INC., $528.87, is a buy. The company (New York symbol TMO; TSINetwork Rating: Average) (thermofisher.com; Shares o/s: 385.9 million; Market cap: $206.3 billion; Dividend yield: 0.3%) is a leading maker of scientific instruments, laboratory equipment, diagnostic consumables, and life science reagents.
In the quarter ended July 1, 2023, Thermo Fisher’s revenue fell 2.6%, to $10.69 billion from $10.97 billion a year earlier. The decline was mostly due to lower revenue from COVID-related sales of testing equipment as the pandemic eased. Without that, revenue rose by 2%. Excluding one-time items, per-share earnings fell 6.5%, to $5.15 from $5.51. Earnings fell along with sales.
Overall, Thermo Fisher has relied on acquisitions for growth; it also has a high p/e and low yield. That combination leaves its shares vulnerable to a sharp setback on bad corporate news or overall stock market weakness. Still, the company’s success could produce substantial gains.
Thermo Fisher is a buy.
CORTEVA INC., $50.01, is a Power buy. The company (www.corteva.com; New York symbol CTVA; TSINetwork Rating: Extra Risk) (Shares o/s: 709.8 million; Market cap: $36.0 billion; Dividend yield: 1.3%) and Bioceres Crop Solutions (symbol BIOX on Nasdaq) has entered into an agreement to advance solutions for biological pest control.
Under the agreement, Corteva and Bioceres will work jointly to speed up the European regulatory process for a bioinsecticide developed by Bioceres’ Pro Farm business. The partners will market the product as a biological insecticide that can be as effective as conventional insecticides and is a good fit for mainstream agriculture. The target crops include corn and other cereals, as well as sunflower and canola.
Once registrations are secured, Corteva will be the exclusive distributor in Europe. In addition, Corteva will continue to commercialize Pro Farm’s Lumidapt, a growth nutrition seed treatment for crops.
Demand for effective solutions that are environmentally friendly is growing rapidly in Europe. That’s as the regulatory environment is becoming more challenging and farmers are looking for new and innovative products to control pests and diseases.
Corteva is a Power Buy.