Thermo adds value

Article Excerpt

THERMO FISHER SCIENTIFIC INC. $480.41 (New York symbol TMO; TSINetwork Rating: Average) (www.thermofisher.com; Shares outstanding: 393.0 million; Market cap: $189.6 billion; Dividend yield: 0.2%) is now buying pharmaceutical-testing firm PDD Inc, for more than $15 billion. PPD is a contract-research organization, a type of company that runs studies to test experimental drugs developed by pharmaceutical companies. PPD also provides laboratory services. The contract-research industry has expanded in recent years as pharma companies put money into developing new cancer and other treatments. While CROs, as the firms are known, were hurt in the early days of the pandemic when pharma trials were disrupted, activity has been returning. Testing of COVID-19 drugs and vaccines have also boosted revenue. Meanwhile, the industry is positioned to benefit further from heightened interest in treatments and preventive measures for any future pandemics. Thermo Fisher is a buy. We’re adding a new stock ths month with seed and crop-chemical maker Corteva. Meanwhile, we update our advice on two rapidly growing healthcare stocks—1Life Healthcare and WELL Health—as they prosper during…