Should You Invest in Thermo Fisher?

OVERVIEW

Thermo Fisher Scientific Incorporation is a company based in the United States. The company designs, manufactures, and sells pharmaceutical research equipment and other products around the world. The company manufactures equipment used to research new drugs and medical devices, various kinds of lab equipment, diagnostic test kits, and many other products. The company was founded in 1956.

Why You Should?

  1. Thermo Fisher is a great reopening play in an investor’s portfolio. The company saw a drop in some demand for certain products as the entire pharmaceutical invested heavily in finding a cure/vaccination for COVID-19. However, once the pandemic is over, the company will see strong growth across all of its product categories.
  2. The COVID-19 pandemic benefited the company as well. The company played a critical part in offering hardware and software in order to learn more about the virus. For example, the company designed several diagnostic testing kits so that people can be tested for COVID-19. This benefited the company and its investors over the past financial year.
  3. Thermo Fisher, like many other pharmaceutical companies, has an extremely profitable business model. The company makes most of its profits by selling a wide range of pharmaceutical and laboratory research hardware and software to clients around the world. A profitable business model will benefit the company and its investors.
  4. Thermo Fisher sells a wide range of products to clients around the world. Most of its products are commonly found in labs and other pharmaceutical companies around the world. The company sells everything from diagnostic test kits to large equipment used to design new drugs. Selling a wide range of products will benefit the company and its investors.
  5. The company is a part of a growing industry. As many companies across the pharmaceutical (both large and small), come up with solutions to fight different diseases and viruses, Thermo Fisher will continue to sell a high quantity of its research products. This strong growth in the overall pharmaceutical industry will benefit the company and investors.

Why You Should Not?

  1. The company faces tough competition in the pharmaceutical research industry. Some of these competitors include Brunker, Danaher, Bio-Rad, and many others. This competition might hurt the company and its investors in the future.
  2. Thermo Fisher continues to face a wide range of supply chain issues and rising costs. For example, the company is faced with rising transit costs due to a shipping and freight shortage. In addition to this, it is also unable to acquire critical components like semiconductors and other sensors that are used in its hardware products. This will hurt the company and its investors.

MY OPINION

I think that Thermo FIsher is a great long-term investment due to its position as a good reopening play, positive impacts from the pandemic, a profitable business model, a wide range of products and services, as well as its position in a growing industry. However, tough competition and negative impacts from supply chain issues might hurt the company and its investors in the future.

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