Two healthcare leaders with gains ahead

Article Excerpt

We think the drug industry will enjoy great success over the next decade. But due to the nature of the business, results will vary widely and unpredictably from one drug company to another. A volatile market like the one we expect for drug stocks will include winners and losers. Here are two that we expect to be among the big winners. THERMO FISHER SCIENTIFIC INC., $550.35, is a buy. Your shares (New York symbol TMO; TSINetwork Rating: Average) (www.thermofisher.com; Shares outstanding: 394.0 million; Market cap: $219.4 billion; Dividend yield: 0.2%) let you tap this leading manufacturer of scientific instruments, laboratory equipment, diagnostic consumables, and life science reagent chemicals. In the quarter ended December 31, 2021, Thermo Fisher’s revenue rose 1.4%, to $10.70 billion from $10.55 billion a year earlier. The latest quarter included $2.45 billion in COVID-related sales of testing equipment and so on. That was down from $3.2 billion as the pandemic eased. Excluding one-time items, the company earned $2.60 billion, or $6.54 a share, in…